Step 1: Category can be created in item creation page.
Step 2: In system admin access–>go to inventory–>under item details–>click on create items–>In the item creation page we have the options to create category, subcategory and category types. To create category click on ‘+’ symbol as shown in the below screenshot.
Step 3: when we click on ‘+’ will navigate to the below screen, click on create inventory category and give the required names such as Books, magazines, CD’s etc., and click on save