# Setup Raw/Finish Item Categories
**YouTube:** [How to Set Up Raw and Finished Item Categories ?](https://www.youtube.com/watch?v=-xX5IbeJq2c)
## How to Set Up Raw and Finished Item Categories?
In this tutorial, we will learn how to create and use **Raw and Finished Item Categories** in Logic ERP for better item classification and reporting.
***
### **Open Category Setup**
* Go to the **Setup Module** from the Main Menu
* Navigate to **Setup Item**
* Open **“Setup Raw/Finish Item Categories”.**
***
### **Create Item Categories**
* Enter the **Category Name**
* Define a **Short Name**
* Click on **Save**
You can create multiple categories for both **Raw Materials** and **Finished Goods** as per your business requirements.
***
### **Assign Categories to Items**
* Go to **“Setup Items Multiple Packs/Sizes”** from the Menu bar
* In the **header section**, you will find:
* **Raw Category**
* **Finished Category**
* Select the appropriate categories from the dropdown while creating or editing items
***
### **Use Categories in Reports**
* Navigate to **Stock Report** from the **Reports/Queries.**
* Open the **Stock Query Report**
* Click on **Item Filters**
**Filter by Category**
* In the filter panel:
* Select **Raw Category** or **Finished Category**
* Choose the desired category
* Search and select relevant items/articles
* Click on **Generate Report**
***
### **Result**
* The report will display **stock details filtered based on the selected category**
* Helps in:
* Better inventory analysis
* Segregation of raw and finished goods
* Faster decision-making
***
### **Conclusion**
Setting up Raw and Finished Item Categories allows you to organize your inventory efficiently and generate more precise, category-based reports.
---
# Agent Instructions: Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter:
```
GET https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/setup-items/setup-raw-finish-item-categories.md?ask=
```
The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.