Assigning categories to items

To categorize items, select "Inventory" and then "Items" from the main navigation. On the items page select the "Categories" tab.
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Hover over the category to assign items to and select "Manage Category".
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On the category settings page select the "Assigned Items" tab.
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Hover over each grid item of the items that will be assigned to the selected category and hit the "Assign Item" button.