Categories are used to group similar items. For example if you are selling garments, Ladies, Gems and Kids can be categories. Likewise Pants and Shirts are subcategories of Gents category.

 

Add a Category
 

1. Go to Inventory =>Categories

2. Click Add New Category

3. Name your category, fill other form fields and save.
 

Each "parent" category will contain a link “Add New Category” below it to add subcategory.