# 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.
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### **Open Category Setup**
* Go to the **Setup Module** from the Main Menu
* Navigate to **Setup Item**
* Open **“Setup Raw/Finish Item Categories”.**
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### **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.
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### **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
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### **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**
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### **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
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### **Conclusion**
Setting up Raw and Finished Item Categories allows you to organize your inventory efficiently and generate more precise, category-based reports.
