Creating Product Categories

1. Go to Inventory > Configuration > Product Categories 

2. Click on New

3. Fill in the below fields:

• Category Name 
• Parent Category
• Company
• Costing Method 
• Inventory Valuation - Select the inventory valuation as Automated
• Route
• Force Removal Strategy - Select the force removal strategy as FIFO
• Income Account 
• Expense Account  

4. Once done, click on Save

You can also watch this video for reference: https://waoconnect.screencasthost.com/watch/c0eVoTVy7fA