<chapter id="details.categories">
<chapterinfo>
<authorgroup>
<author>
<firstname>Roger</firstname>
<surname>Lum</surname>
<affiliation><address><email>rogerlum@gmail.com</email></address></affiliation>
</author>
</authorgroup>
<date>2005-06-01</date>
<releaseinfo>0.7</releaseinfo>
</chapterinfo>

<title id="details.categories.title">Categories</title>

<para>
  The Categories screen provides a summary of all the existing categories transactions are filed under. The categories are split into income and expense, and a balance is displayed for each category.
</para>

<para>
	<screenshot>
	<mediaobject>
	<imageobject>
	<imagedata fileref="categories.png" format="PNG" />
	</imageobject>
	</mediaobject>
	</screenshot>
</para>

<sect1 id="details.categories.create">
<title>Creating categories</title>
<para>
	To create a new category select a parent in the tree and right click to bring up the popup menu.  Once open select the <guimenuitem>New Category</guimenuitem> option.  This will open the account details dialog with the parent account selected.
</para>

<para>
	<screenshot>
	<mediaobject>
	<imageobject>
	<imagedata fileref="categoryedit.png" format="PNG" />
	</imageobject>
	</mediaobject>
	</screenshot>
</para>

<para>
	Enter the category name any notes and click on <guibutton>OK</guibutton> to save the new category.
</para>
</sect1>

<sect1 id="details.categories.edit"><title id="details.categories.edit.title">Editing a Category</title>

<para>
  To edit a category, right-click on a category name, and choose "Edit". A  window comes up, with two tabs, "General" and "Tax". The General tab  allows you to edit the name of the category and change its parent category. Changing the parent category is also possible from the main category page by dragging the category to a different parent. The Tax tab enables automatic VAT assignment. 
</para>

</sect1>

<sect1 id="details.categories.vat">

<sect1info>
<author>
<firstname>Thomas</firstname>
<surname>Baumgart</surname>
<affiliation><address><email>ipwizard@users.sourceforge.net</email></address></affiliation>
</author>
</sect1info>

<title>VAT Support</title>
	
<para>
 You can turn an expense/income account into a VAT 
 category, which means that it receives all the splits that actually make 
 up the VAT payment towards the government. The percentage rate can be 
 entered.
</para>
 
<para>
 Categories can be assigned a VAT category, which allows KMyMoney to split 
 up a transaction for a category into two splits, one for the category and 
 one for the VAT. Depending on the setting of the gross/net amount switch, 
 the amount you enter for the transaction is the gross or net amount.
</para>
 
<para>
 Example: In Germany, there are three VAT percentages (0, 7 and 19%). So I 
 have a main category "VAT paid" and three subcategories, one for each 
 percentage rate. Next I have this on the income and the expense side so a 
 total of 8 categories.  For the goods I buy, I select one of the above 
 mentioned categories as the "VAT category assignment".
</para>
 
<para>
 When I buy goods, I enter them into a transaction. Let"s assume I have 
 selected the gross amount entry method, once I enter the category and 
 amount, KMyMoney will recognize that there"s a VAT assignment and 
 calculates the VAT part, creates a second split with the VAT account and 
 VAT amount and reduces the category amount.
</para>
 
<para>
 The same applies to income categories but the other way around. Hope that 
 makes sense.
</para>

</sect1>

<sect1 id="details.categories.delete">
<title>Deleting categories</title>
<para>
	To delete a category select it in the tree and right click to bring up the popup menu and select <guimenuitem>Delete</guimenuitem>.  Deleting is only possible if there are no transactions under that category. If a parent category is deleted, all the sub-categories are moved up one level.   
</para>

</sect1>

</chapter>
