By using Categories you are able to organise and easily locate your learning material based on overarching topics or themes.
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To get an overview of all the categories currently set up on your platform, navigate to Admin > Learning and select the Categories tab. From this overview, you are also able to see how many associated modules each category has, as well as the color and icon for each category.

To create a new Category, click on the Create category button which will take you to the Category creation screen.
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In this screen, navigate to the Basic details tab at the top of the screen and you can add a name for the Category, provide a translation for the Category name in the languages you require, and also add a parent Category of which the Category you are now creating will then be a sub-Category. 

The Category Color option allows you to change the background color of the category icon as it appears in the list of learning modules as well as in the learning filter options (please see below screenshot)
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In case you're using the Categories Widget on your dashboard, navigating to the Customize tab at the top of the Category creation screen gives you options for customizing how the Category will appear in the widget. There's a preview of your current settings displayed to the right of the options panel which gives you instant visual feedback on your current configuration.

In order to upload an image instead of an icon, you navigate to Background Type and change it to "Image". Once you do this, the Background Color field will change to "Background Image". Now you can add your image to the Category Icon.

Note: In order to display the Category in the dashboard widget make sure to toggle on Show category in dashboard widget at the bottom of the screen. The category widget can be enabled by navigating to Admin > Settings > Dashboard Widgets