Category mapping against the ledger plays a very important role in Profit and Loss Statement. Basis on the category mapping profit and loss statement runs.

Let us understand this by taking an example -  The terminal expense is a direct expense so basically terminal expense will be a child ledger and the parent will be a Direct expense and the category will be Direct Expense. The profit and loss terminal expense ledger will show up under the group direct expense only if the category is mapped properly. 

Learn Category mapping in below video.

Let us Understand Different Categories  below:

1. Direct Expenses Category - Direct Expenses are the expenses which are incurred for operational activities. For Example - Documentation & handling Expenses, Freight Expenses the expenses which are involved in your main business those expense ledger will be mapped with Direct Expense category.
2. Exployee Benefits & Personnel Expenses  Category - Employee Benefit Expenses means expenses incurred on employees. It includes expenses such as salaries and wages, contribution to Provident Fund, staff welfare etc. All these ledgers will be mapped against the Exployee Benefits & Personnel Expenses  Category.
3. Other Operating Expenses Category - Other operating expenses are the indirect expenses; the expenses are not directly incurred in operational activities .These include, for example, marketing expenses, rent and utilities, office expenses, operating leases, IT (software services) and other fixed costs. All these indirect ledgers will mapped against the other operating expenses category.
4. Amortisation Expenses Category - Amortization expenses account for the cost of long-term assets (like computers and vehicles) over the lifetime of their use. All these Amortisation ledgers will be mapped against amortisation expense category.
5. Depreciation Expenses Category - A depreciation expense is the amount deducted from gross profit to allow for a reduction in the value of something because of its age or how much it has been used. When you buy and own equipment, your business may be entitled to deduct a depreciation expense. Depreciation expense ledgers will be mapped against Depreciation Expenses Category.
6. Interest / Financial Expenses Category -  An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings—bonds, loans, convertible debt or lines of credit. Interest expense ledgers will be mapped against interest / finance expenses category.
7. Tax Expenses Category - Tax expenses are the total amount of taxes owed by an individual, corporation, or other entity to a taxing authority. Tax expenses ledgers can be mapped against Tax expenses category.
8. Duties & Receipted Expense category - This category can be mapped against the Custom duties Expense ledgers for Example - Custom duty penalty expense, Custom duty export clearance expense.
9. Duties & Receipted Income category - This category can be mapped against the Custom duties Income ledgers for Example - Custom duty export clearance income, Custom duty receipted clearance income.
10. Management Fees - This category can be mapped against the management fees ledgers.