The Categories screen provides a summary of all the existing categories under which transactions are filed. The categories are split into income and expense, and a balance is displayed for each category.
To create a new category, either select → in the menu, or in the Categories view, select a parent in the tree, right click and select the option. Either way will open the Create new categories wizard. Enter the new category name, and select the currency if the default shown is not correct. In the Hierarchy tab, ensure the required parent account is selected. Finally, in the Tax tab, there is a check box to enable VAT support, and a check box to include this category in certain tax related reports.
Enter the category name any notes and click on to save the new category. To create a complete hierarchy of accounts, separate the names by colons (:) as in Bills:Car:Gasoline.