> ## Documentation Index
> Fetch the complete documentation index at: https://developers.pleo.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Configuring Categories

<Warning>
  **This page has now been ARCHIVED. Please visit:**

  * **[Classifying Expenses: Tags, Categories, and Tax Codes](/docs/current/platform/accounting-integrations/expense-classification-overview)**
  * **[Chart of Accounts Sync Overview](/docs/current/platform/accounting-integrations/imports/accounts/accounts-sync-overview)**
  * **[How to Set Up Your Categories](https://help.pleo.io/en/support/solutions/articles/103000254857-how-to-set-up-your-categories)** (manual setup in the Pleo Web App, includes video)
</Warning>

Categories imply the different types of accounting entries.

Categories in Pleo = Chart of Accounts in an ERP/Accounting software

So, Pleo represents the different accounts from chart of accounts as **Categories**. For example, **meals and drinks**, **IT hardware equipment**, and **other office supplies**. Each expense is incurred for a specific purpose and the purposes are classified and represented as **Categories**.

A few important characteristics of **Categories**:

* When you are creating a new category, you can mention a specific tax code for the category.
* Most accounting entries must have a category assigned. This helps in understanding why the expense is incurred and is useful in categorisation of entries. For example, an out of pocket expense recorded in Pleo is related with **Meals & drinks** - **Lunch allowance**; only exceptions are **Wallet Top Ups** and **Wallet Unloads** where assignment of categories is not mandatory.
* A **Category Group** is like an umbrella term that includes individual categories. For example, a category group is **Meals & drinks** that includes **Lunch allowance**, **Meals & drinks while traveling**, and **Meals & drinks with customers**; each additional value is an individual category.