# How to create an asset category
**Overview**
Asset categories are used to classify and organize all the hardware, software, and other organizational assets in your inventory. By creating logical groups—such as "IT Assets," "HR Assets," "Laptops," or "Software Licenses"—you can more easily manage, filter, and report on your assets. This is the first step in building a structured asset management system.
#### **Step-by-Step Guide**
**1. Navigate to Asset Category Settings**
First, go to the administrative section where asset categories are configured.
* From the main menu, go to Settings (1).
* Click on the Asset section to expand its options.
* Select Category (2 & 3).
**2. Add a New Asset Category**
On the Asset Category Management page, you can begin building your classification system.
* Click the Add Asset Category button (4) in the top right corner.
**3. Name the Category**
A pop-up window will appear for you to name your new category.
* Enter a clear and descriptive Name for the category.
* Click Save.
Your new asset category is now created. You can repeat this process to build out a full classification system for all of your organization's assets. These categories will be available when you add new products and assets to your inventory.
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