Under the "Entries" menu in the Authoring Suite you will find the link "Categories". You can use this option to create, edit or delete new entry categories. There is no limit to the number of categories you can create. Each category has the following options:
Name: The name of the category.
Description: Description of the category.
Image: An image or icon that can appear within every entry assigned to this category, if enabled by your template.
Read Permission: User Groups that may read entries assigned to this category.
Write Permission: User groups that may assign entries to this category.
Parent Category: Top level category is this category is a sub category.
Hide postings made to sub-categories?: By default, when you browse a category, entries assngied to any subcategory are also displayed. If this option is enabled, only postings of this subcategory are displayed.