SedonaSetup - GL - Categories

The Category table is used to group financial transactions into user-defined categories for reporting purposes. 

A Category may be a department within your company, a geographic location, a division of service, or a profit center.  The Category is not mandatory, but highly recommended, and it can provide useful management analytical reporting.  Using Categories is a way of departmentalizing your General Ledger transaction activity.
A Category is assigned to Income and Expense transactions only.