diff --git a/app/Http/Controllers/Modals/Categories.php b/app/Http/Controllers/Modals/Categories.php
index 370b4afab..d3a58631a 100644
--- a/app/Http/Controllers/Modals/Categories.php
+++ b/app/Http/Controllers/Modals/Categories.php
@@ -6,10 +6,14 @@ use App\Abstracts\Http\Controller;
 use App\Http\Requests\Setting\Category as Request;
 use App\Jobs\Setting\CreateCategory;
 use App\Models\Setting\Category;
+use App\Traits\Categories as Helper;
+use App\Traits\Modules;
 use Illuminate\Http\Request as IRequest;
 
 class Categories extends Controller
 {
+    use Helper, Modules;
+
     /**
      * Instantiate a new controller instance.
      */
@@ -29,19 +33,42 @@ class Categories extends Controller
      */
     public function create(IRequest $request)
     {
-        $type = $request->get('type', 'item');
+        $type = $request->get('type', Category::ITEM_TYPE);
+
+        switch ($type) {
+            case Category::INCOME_TYPE:
+                $types = $this->getIncomeCategoryTypes();
+                break;
+            case Category::EXPENSE_TYPE:
+                $types = $this->getExpenseCategoryTypes();
+                break;
+            case Category::ITEM_TYPE:
+                $types = $this->getItemCategoryTypes();
+                break;
+            case Category::OTHER_TYPE:
+                $types = $this->getOtherCategoryTypes();
+                break;
+            default:
+                $types = [$type];
+        }
 
         $categories = collect();
 
-        Category::type($type)->enabled()->orderBy('name')->get()->each(function ($category) use (&$categories) {
-            $categories->push([
-                'id' => $category->id,
-                'title' => $category->name,
-                'level' => $category->level,
-            ]);
-        });
+        Category::type($types)
+            ->enabled()
+            ->orderBy('name')
+            ->get()
+            ->each(function ($category) use (&$categories) {
+                $categories->push([
+                    'id' => $category->id,
+                    'title' => $category->name,
+                    'level' => $category->level,
+                ]);
+            });
 
-        $html = view('modals.categories.create', compact('type', 'categories'))->render();
+        $has_code = $this->moduleIsEnabled('double-entry');
+
+        $html = view('modals.categories.create', compact('type', 'types', 'categories', 'has_code'))->render();
 
         return response()->json([
             'success' => true,
@@ -61,7 +88,7 @@ class Categories extends Controller
     public function store(Request $request)
     {
         $request['enabled'] = 1;
-        $request['type'] = $request->get('type', 'income');
+        $request['type'] = $request->get('type', Category::ITEM_TYPE);
         $request['color'] = $request->get('color', '#' . dechex(rand(0x000000, 0xFFFFFF)));
 
         $response = $this->ajaxDispatch(new CreateCategory($request));
diff --git a/app/Models/Setting/Category.php b/app/Models/Setting/Category.php
index 239965176..2f68a75ee 100644
--- a/app/Models/Setting/Category.php
+++ b/app/Models/Setting/Category.php
@@ -4,11 +4,13 @@ namespace App\Models\Setting;
 
 use App\Abstracts\Model;
 use App\Builders\Category as Builder;
+use App\Models\Banking\Transaction;
 use App\Models\Document\Document;
 use App\Interfaces\Export\WithParentSheet;
 use App\Relations\HasMany\Category as HasMany;
 use App\Scopes\Category as Scope;
 use App\Traits\Categories;
+use App\Traits\DateTime;
 use App\Traits\Tailwind;
 use App\Traits\Transactions;
 use Illuminate\Database\Eloquent\Builder as EloquentBuilder;
@@ -17,7 +19,7 @@ use Illuminate\Database\Eloquent\Model as EloquentModel;
 
 class Category extends Model
 {
-    use Categories, HasFactory, Tailwind, Transactions;
+    use Categories, HasFactory, Tailwind, Transactions, DateTime;
 
     public const INCOME_TYPE = 'income';
     public const EXPENSE_TYPE = 'expense';
@@ -33,14 +35,14 @@ class Category extends Model
      *
      * @var array
      */
-    protected $fillable = ['company_id', 'name', 'type', 'color', 'enabled', 'created_from', 'created_by', 'parent_id'];
+    protected $fillable = ['company_id', 'code', 'name', 'type', 'color', 'description', 'enabled', 'created_from', 'created_by', 'parent_id'];
 
     /**
      * Sortable columns.
      *
      * @var array
      */
-    public $sortable = ['name', 'type', 'enabled'];
+    public $sortable = ['code', 'name', 'type', 'enabled'];
 
     /**
      * The "booted" method of the model.
@@ -137,6 +139,18 @@ class Category extends Model
         return $this->hasMany('App\Models\Banking\Transaction');
     }
 
+    /**
+     * Scope code.
+     *
+     * @param \Illuminate\Database\Eloquent\Builder $query
+     * @param $code
+     * @return \Illuminate\Database\Eloquent\Builder
+     */
+    public function scopeCode($query, $code)
+    {
+        return $query->where('code', $code);
+    }
+
     /**
      * Scope to only include categories of a given type.
      *
@@ -155,46 +169,50 @@ class Category extends Model
 
     /**
      * Scope to include only income.
+     * Uses Categories trait to support multiple income types (e.g. from modules).
      *
      * @param \Illuminate\Database\Eloquent\Builder $query
      * @return \Illuminate\Database\Eloquent\Builder
      */
     public function scopeIncome($query)
     {
-        return $query->where($this->qualifyColumn('type'), '=', 'income');
+        return $query->whereIn($this->qualifyColumn('type'), $this->getIncomeCategoryTypes());
     }
 
     /**
      * Scope to include only expense.
+     * Uses Categories trait to support multiple expense types (e.g. from modules).
      *
      * @param \Illuminate\Database\Eloquent\Builder $query
      * @return \Illuminate\Database\Eloquent\Builder
      */
     public function scopeExpense($query)
     {
-        return $query->where($this->qualifyColumn('type'), '=', 'expense');
+        return $query->whereIn($this->qualifyColumn('type'), $this->getExpenseCategoryTypes());
     }
 
     /**
      * Scope to include only item.
+     * Uses Categories trait to support multiple item types (e.g. from modules).
      *
      * @param \Illuminate\Database\Eloquent\Builder $query
      * @return \Illuminate\Database\Eloquent\Builder
      */
     public function scopeItem($query)
     {
-        return $query->where($this->qualifyColumn('type'), '=', 'item');
+        return $query->whereIn($this->qualifyColumn('type'), $this->getItemCategoryTypes());
     }
 
     /**
      * Scope to include only other.
+     * Uses Categories trait to support multiple other types (e.g. from modules).
      *
      * @param \Illuminate\Database\Eloquent\Builder $query
      * @return \Illuminate\Database\Eloquent\Builder
      */
     public function scopeOther($query)
     {
-        return $query->where($this->qualifyColumn('type'), '=', 'other');
+        return $query->whereIn($this->qualifyColumn('type'), $this->getOtherCategoryTypes());
     }
 
     public function scopeName($query, $name)
@@ -213,6 +231,17 @@ class Category extends Model
         return $query->withoutGlobalScope(new Scope);
     }
 
+    /**
+     * Scope gets only parent categories.
+     *
+     * @param \Illuminate\Database\Eloquent\Builder $query
+     * @return \Illuminate\Database\Eloquent\Builder
+     */
+    public function scopeIsNotSubCategory($query)
+    {
+        return $query->whereNull('parent_id');
+    }
+
     /**
      * Scope to export the rows of the current page filtered and sorted.
      *
@@ -233,7 +262,7 @@ class Category extends Model
 
         $search = $request->get('search');
 
-        $query->withSubcategory();
+        $query->withSubCategory();
 
         $query->usingSearchString($search)->sortable($sort);
 
@@ -261,9 +290,92 @@ class Category extends Model
     /**
      * Get the display name of the category.
      */
-    public function getDisplayNameAttribute()
+    public function getDisplayNameAttribute(): string
     {
-        return $this->name . ' (' . ucfirst($this->type) . ')';
+        $typeConfig = config('type.category.' . $this->type, []);
+        $hideCode = isset($typeConfig['hide']) && in_array('code', $typeConfig['hide']);
+
+        $typeNames = $this->getCategoryTypes();
+        $typeName = $typeNames[$this->type] ?? ucfirst($this->type);
+
+        $prefix = (!$hideCode && $this->code) ? $this->code . ' - ' : '';
+
+        return $prefix . $this->name . ' (' . $typeName . ')';
+    }
+
+    /**
+     * Get the balance of a category.
+     *
+     * @return double
+     */
+    public function getBalanceAttribute()
+    {
+        // If view composer has set the balance, return it directly
+        if (isset($this->de_balance)) {
+            return $this->de_balance;
+        }
+
+        $financial_year = $this->getFinancialYear();
+
+        $start_date = $financial_year->getStartDate();
+        $end_date = $financial_year->getEndDate();
+
+        $this->transactions->whereBetween('paid_at', [$start_date, $end_date])
+            ->each(function ($transaction) use (&$incomes, &$expenses) {
+                if (($transaction->isNotIncome() && $transaction->isNotExpense()) || $transaction->isTransferTransaction()) {
+                    return;
+                }
+
+                if ($transaction->isIncome()) {
+                    $incomes += $transaction->getAmountConvertedToDefault();
+                } else {
+                    $expenses += $transaction->getAmountConvertedToDefault();
+                }
+            });
+
+        $balance = $incomes - $expenses;
+
+        $this->sub_categories()
+            ->each(function ($sub_category) use (&$balance) {
+                $balance += $sub_category->balance;
+            });
+
+        return $balance;
+    }
+
+    /**
+     * Get the balance of a category without considering sub categories.
+     *
+     * @return double
+     */
+    public function getBalanceWithoutSubcategoriesAttribute()
+    {
+        // If view composer has set the balance, return it directly
+        if (isset($this->without_subcategory_de_balance)) {
+            return $this->without_subcategory_de_balance;
+        }
+
+        $financial_year = $this->getFinancialYear();
+
+        $start_date = $financial_year->getStartDate();
+        $end_date = $financial_year->getEndDate();
+
+        $this->transactions->whereBetween('paid_at', [$start_date, $end_date])
+            ->each(function ($transaction) use (&$incomes, &$expenses) {
+                if (($transaction->isNotIncome() && $transaction->isNotExpense()) || $transaction->isTransferTransaction()) {
+                    return;
+                }
+
+                if ($transaction->isIncome()) {
+                    $incomes += $transaction->getAmountConvertedToDefault();
+                } else {
+                    $expenses += $transaction->getAmountConvertedToDefault();
+                }
+            });
+
+        $balance = $incomes - $expenses;
+
+        return $balance;
     }
 
     /**
@@ -303,6 +415,19 @@ class Category extends Model
         return $actions;
     }
 
+    /**
+     * A no-op callback that gets fired when a model is cloning but before it gets
+     * committed to the database
+     *
+     * @param  Illuminate\Database\Eloquent\Model $src
+     * @param  boolean $child
+     * @return void
+     */
+    public function onCloning($src, $child = null)
+    {
+        $this->code = $this->getNextCategoryCode();
+    }
+
     /**
      * Create a new factory instance for the model.
      *
diff --git a/config/search-string.php b/config/search-string.php
index 75945eb85..d717c5fc8 100644
--- a/config/search-string.php
+++ b/config/search-string.php
@@ -1,5 +1,7 @@
 <?php
 
+use App\Models\Setting\Category;
+
 return [
 
     /*
@@ -184,7 +186,7 @@ return [
             'payment_method',
             'reference',
             'category_id' => [
-                'route' => ['categories.index', 'search=type:income,expense enabled:1'],
+                'route' => ['categories.index', 'search=type:' . Category::INCOME_TYPE . ',' . Category::EXPENSE_TYPE . ' enabled:1'],
                 'fields' => [
                     'key' => 'id',
                     'value' => 'display_name',
@@ -246,7 +248,7 @@ return [
             'description' => ['searchable' => true],
             'enabled' => ['boolean' => true],
             'category_id' => [
-                'route' => ['categories.index', 'search=type:item enabled:1'],
+                'route' => ['categories.index', 'search=type:' . Category::ITEM_TYPE . ' enabled:1'],
                 'fields' => [
                     'key' => 'id',
                     'value' => 'name',
@@ -352,7 +354,7 @@ return [
             'contact_phone' => ['searchable' => true],
             'contact_address' => ['searchable' => true],
             'category_id' => [
-                'route' => ['categories.index', 'search=type:income,expense enabled:1'],
+                'route' => ['categories.index', 'search=type:' . Category::INCOME_TYPE . ',' . Category::EXPENSE_TYPE . ' enabled:1'],
                 'multiple' => true,
             ],
             'parent_id',
@@ -403,7 +405,7 @@ return [
             'contact_phone' => ['searchable' => true],
             'contact_address' => ['searchable' => true],
             'category_id' => [
-                'route' => ['categories.index', 'search=type:expense enabled:1'],
+                'route' => ['categories.index', 'search=type:' . Category::EXPENSE_TYPE . ' enabled:1'],
                 'fields' => [
                     'key' => 'id',
                     'value' => 'name',
@@ -459,7 +461,7 @@ return [
             'contact_phone' => ['searchable' => true],
             'contact_address' => ['searchable' => true],
             'category_id' => [
-                'route' => ['categories.index', 'search=type:income enabled:1'],
+                'route' => ['categories.index', 'search=type:' . Category::INCOME_TYPE . ' enabled:1'],
                 'fields' => [
                     'key' => 'id',
                     'value' => 'name',
@@ -480,6 +482,8 @@ return [
     App\Models\Setting\Category::class => [
         'columns' => [
             'id',
+            'code' => ['searchable' => true],
+            'description' => ['searchable' => true],
             'name' => ['searchable' => true],
             'enabled' => ['boolean' => true],
             'type' => [
diff --git a/database/migrations/2026_02_17_000000_core_v3122.php b/database/migrations/2026_02_17_000000_core_v3122.php
new file mode 100644
index 000000000..2f2a2744b
--- /dev/null
+++ b/database/migrations/2026_02_17_000000_core_v3122.php
@@ -0,0 +1,34 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    /**
+     * Run the migrations.
+     *
+     * @return void
+     */
+    public function up(): void
+    {
+        Schema::table('categories', function (Blueprint $table) {
+            $table->string('code')->nullable()->after('company_id');
+            $table->text('description')->nullable()->after('color');
+        });
+    }
+
+    /**
+     * Reverse the migrations.
+     *
+     * @return void
+     */
+    public function down(): void
+    {
+        Schema::table('categories', function (Blueprint $table) {
+            $table->dropColumn('code');
+            $table->dropColumn('description');
+        });
+    }
+};
diff --git a/resources/views/modals/categories/create.blade.php b/resources/views/modals/categories/create.blade.php
index 2f0076ae0..a1efc5818 100644
--- a/resources/views/modals/categories/create.blade.php
+++ b/resources/views/modals/categories/create.blade.php
@@ -2,11 +2,22 @@
     <div class="grid sm:grid-cols-6 gap-x-8 gap-y-6 my-3.5">
         <x-form.group.text name="name" label="{{ trans('general.name') }}" form-group-class="col-span-6" />
 
+        @if ($has_code)
+            <x-form.group.text name="code" label="{{ trans('general.code') }}" form-group-class="col-span-6" />
+        @endif
+
         <x-form.group.color name="color" label="{{ trans('general.color') }}" form-group-class="col-span-6" />
 
         <x-form.group.select name="parent_id" label="{{ trans('general.parent') . ' ' . trans_choice('general.categories', 1) }}" :options="$categories" not-required sort-options="false" searchable form-group-class="col-span-6" />
 
-        <x-form.input.hidden name="type" value="{{ $type }}" />
+        @if (!empty($types) && count($types) > 1)
+            <x-form.group.select name="type" label="{{ trans_choice('general.types', 1) }}" :options="$types" value="{{ $type }}" form-group-class="col-span-6" />
+        @else
+            <x-form.input.hidden name="type" value="{{ $type }}" />
+        @endif
+
+        <x-form.group.textarea name="description" label="{{ trans('general.description') }}" not-required />
+
         <x-form.input.hidden name="enabled" value="1" />
     </div>
 </x-form>
diff --git a/resources/views/settings/categories/create.blade.php b/resources/views/settings/categories/create.blade.php
index cb979a2ae..ed12cc5dd 100644
--- a/resources/views/settings/categories/create.blade.php
+++ b/resources/views/settings/categories/create.blade.php
@@ -20,12 +20,18 @@
                     <x-slot name="body">
                         <x-form.group.text name="name" label="{{ trans('general.name') }}" />
 
+                        @if ($has_code)
+                            <x-form.group.text name="code" label="{{ trans('general.code') }}" />
+                        @endif
+
                         <x-form.group.color name="color" label="{{ trans('general.color') }}" />
 
-                        <x-form.group.select name="type" label="{{ trans_choice('general.types', 1) }}" :options="$types" :selected="config('general.types')" change="updateParentCategories" />
+                        <x-form.group.select name="type" label="{{ trans_choice('general.types', 1) }}" :options="$types" :selected="config('general.types')" change="updateParentCategories" group />
 
                         <x-form.group.select name="parent_id" label="{{ trans('general.parent') . ' ' . trans_choice('general.categories', 1) }}" :options="[]" not-required dynamicOptions="categoriesBasedTypes" sort-options="false" v-disabled="selected_type" />
 
+                        <x-form.group.textarea name="description" label="{{ trans('general.description') }}" not-required />
+
                         <x-form.input.hidden name="categories" value="{{ json_encode($categories) }}" />
                     </x-slot>
                 </x-form.section>
diff --git a/resources/views/settings/categories/edit.blade.php b/resources/views/settings/categories/edit.blade.php
index f3ad8fefd..35c121729 100644
--- a/resources/views/settings/categories/edit.blade.php
+++ b/resources/views/settings/categories/edit.blade.php
@@ -14,20 +14,26 @@
                     <x-slot name="body">
                         <x-form.group.text name="name" label="{{ trans('general.name') }}" />
 
+                        @if ($has_code)
+                            <x-form.group.text name="code" label="{{ trans('general.code') }}" />
+                        @endif
+
                         <x-form.group.color name="color" label="{{ trans('general.color') }}" />
 
                         @if ($type_disabled)
-                            <x-form.group.select name="type" label="{{ trans_choice('general.types', 1) }}" :options="$types" v-disabled="true" />
+                            <x-form.group.select name="type" label="{{ trans_choice('general.types', 1) }}" :options="$types" v-disabled="true" group />
 
                             <input type="hidden" name="type" value="{{ $category->type }}" />
                         @else
-                            <x-form.group.select name="type" label="{{ trans_choice('general.types', 1) }}" :options="$types" change="updateParentCategories" />
+                            <x-form.group.select name="type" label="{{ trans_choice('general.types', 1) }}" :options="$types" change="updateParentCategories" group />
 
                             <x-form.group.select name="parent_id" label="{{ trans('general.parent') . ' ' . trans_choice('general.categories', 1) }}" :options="$parent_categories" not-required dynamicOptions="categoriesBasedTypes" sort-options="false" />
 
                             <x-form.input.hidden name="parent_category_id" value="{{ $category->parent_id }}" />
                             <x-form.input.hidden name="categories" value="{{ json_encode($categories) }}" />
                         @endif
+
+                        <x-form.group.textarea name="description" label="{{ trans('general.description') }}" not-required />
                     </x-slot>
                 </x-form.section>