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

# Transaction category settings

> Create, rename, and archive custom categories for your entity.

[Transaction category settings](https://app.getlemma.com/_/settings/transaction-categories) helps your team organize and report on transactions. Default categories are available to every entity. Custom categories are specific to the selected entity.

<Badge color="yellow">Accounting and owners</Badge> Accounting members and owners can manage custom categories. Any member who can access a transaction can apply an existing category from transaction details or when sending a transfer.

## Custom categories

### Create a category

Select **Add category**, enter a name, and save it. Use a name that makes the bookkeeping purpose clear. Lemma limits custom category names to 30 characters.

### Rename a category

Open the action controls for a custom category, select **Edit**, enter the new name, and save. Renaming changes the label available for future use; it does not rewrite the transaction history or alter the underlying transaction.

### Archive a category

Choose the archive action and confirm. An archived custom category is removed from the category picker for new transactions, but transactions already tagged with it keep their existing label. Archiving is not the same as deleting historical categorization.

## Default categories

Default categories appear in their own list. They are provided by Lemma and cannot be renamed or archived from this page.

## Applying a category

You do not need to open Settings to categorize a transaction:

* Open a transaction and choose a value from **Category**.
* When sending money, choose the optional **Category** before submitting the transfer. If the transfer requires approval, the category is applied when the transfer is approved and sent.

See the [Transaction categories guide](/docs/guides/transaction-categories) for the full category list and reporting guidance.


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