> ## Documentation Index > Fetch the complete documentation index at: https://docs.budgetbandit.io/llms.txt > Use this file to discover all available pages before exploring further. # Categorize a transaction > Assign a category to a transaction, or change one that's already set, so spending lands in the right envelope. A category tells the budget where a transaction belongs. Categorized outflows draw down the money you assigned to that category; categorized income adds to Ready to Assign. A transaction with no category still affects the account balance, but it won't show up in your category spending until you assign one. ## Set or change a category Click the transaction in the register to open it, then pick a category from the category field. The picker groups categories the same way your budget does, and it shows how much is still **available** in the selected category for that transaction's month. Save the row. Long-press the transaction and choose **Categorize**, then pick a category from the searchable list. You can also open the full edit sheet by tapping the row and set the category there. To remove a category, open the picker and choose the clear / "No category" option. ## Categorize many at once If several transactions belong in the same category, select them and use [bulk actions](/transactions/bulk-actions) → **Category** to set them all in one step. ## Let categorizing happen on its own You don't have to categorize every transaction by hand: * **Rules** apply a category automatically based on the payee, amount, memo, or account. See [Create a rule](/rules/create-a-rule). * **Payees** can carry a default category, so the next transaction from that payee starts out categorized. See [Payees](/transactions/payees). ## A note on transfers A [transfer](/transactions/transfers) between two of your accounts has no category — it isn't spending, just money moving. Transfer rows show the other account's name in place of a category. ## If something looks wrong * Spending isn't showing in a category → confirm the transaction has that category set, and that the date falls in the month you're viewing. * A category went negative → [Cover overspending](/budgeting/cover-overspending). ## Related Auto-categorize transactions by payee or amount. Recategorize a batch of transactions at once. Give a payee a default category. How categories and groups are organized.