Categories give you a way to break down income and expenses from each other. With the help of categories, you are able to distinguish and segmentize transactions by their types.
To add categories in WP ever Accounting, go to Settings and click on the Categories tab and simply click on ‘Add New’ which will take you to a page to add up a category.
Add categories by type
Categories are mainly separated by two types – Incomes and Expenses. Incomes from a certain account can be assigned to different income categories. Similarly, expenses can also be assigned to different expense categories. There is another category type – ‘other’ which holds all the data transferred from one account to another. This category does not affect the incomes or expenses. You can also create categories for items. All categories can be identified by their name and colors. The color set for a particular category will be visible on the pie chart in the Overview section as a numerical proportion.
Categories Listing – Fields
A list of all created categories with the types – income and expense will appear on the page. You will see several fields like – name, type, color, and dedicated enable/disable button. These predefined colors help you to identify categories on the pie chart to visualize categorical proportions for both income and expenses. The dedicated enable/disable button helps you to activate or deactivate categories individually. If you want to update an existing category, simply hover over the name of a category and an edit button will appear.