Category is a means of classifying products and services you sell to customers which makes accounting for inventory easier. Categorizing what you sell can help you better understand sales volume and who’s buying what.
You can also search for items by category, saving you time when completing transaction form.
You can also create a category when setting up (or editing) an item or service by selecting Add New on the category drop down.
If you remove a category, or subcategory, items that are within it will be either moved up one sub-category level or reclassified as Uncategorized.
When you switch from sub-items to Categories, inactive parent items appear with “deleted” in the category name. If you don't want to use it, you can easily remove it.
If you want to continue using it, simply rename by selecting Edit instead of Remove. Enter the new name, then select Save.