> For the complete documentation index, see [llms.txt](https://docs.rmhpos.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rmhpos.com/store-manager/configure-pos-and-store-manager/merchandising/setting-up-categories.md).

# Categories

Setting up categories is not required, but it is recommended. If you organize your items into departments and categories it is easier to analyze inventory, pricing, and profits.

1. Click **Merchandising**.
2. Click **Categories**.
3. Do one of the following:

* To add a new department, click **New**.
* To edit an existing department, select it and click **Edit**.

4. For **Code**, enter a unique code, e.g., a number or abbreviation, that identifies the department.
5. For **Name**, enter the name of the category.
6. Click the checkbox beside **Department code**, select the department that the category belongs to, and click **OK**.
7. Click **Save And Close**.


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