diff --git a/app/Http/Controllers/Settings/Defaults.php b/app/Http/Controllers/Settings/Defaults.php
index 6be3afb9e..818cfaf8c 100644
--- a/app/Http/Controllers/Settings/Defaults.php
+++ b/app/Http/Controllers/Settings/Defaults.php
@@ -4,6 +4,7 @@ namespace App\Http\Controllers\Settings;
 
 use App\Abstracts\Http\Controller;
 use App\Models\Banking\Account;
+use App\Models\Setting\Category;
 use App\Models\Setting\Currency;
 use App\Models\Setting\Tax;
 use App\Utilities\Modules;
@@ -16,6 +17,9 @@ class Defaults extends Controller
 
         $currencies = Currency::enabled()->orderBy('name')->pluck('name', 'code');
 
+        $sales_categories = Category::income()->enabled()->orderBy('name')->pluck('name', 'id');
+        $purchases_categories = Category::expense()->enabled()->orderBy('name')->pluck('name', 'id');
+
         $taxes = Tax::enabled()->orderBy('name')->get()->pluck('title', 'id');
 
         $payment_methods = Modules::getPaymentMethods();
@@ -23,6 +27,8 @@ class Defaults extends Controller
         return view('settings.default.edit', compact(
             'accounts',
             'currencies',
+            'sales_categories',
+            'purchases_categories',
             'taxes',
             'payment_methods'
         ));
diff --git a/app/Listeners/Update/V21/Version210.php b/app/Listeners/Update/V21/Version210.php
index eb5bd4107..cacf6257e 100644
--- a/app/Listeners/Update/V21/Version210.php
+++ b/app/Listeners/Update/V21/Version210.php
@@ -4,6 +4,9 @@ namespace App\Listeners\Update\V21;
 
 use App\Abstracts\Listeners\Update as Listener;
 use App\Events\Install\UpdateFinished as Event;
+use App\Models\Setting\Category;
+use App\Models\Common\Company;
+use App\Utilities\Overrider;
 use Illuminate\Support\Facades\Artisan;
 
 class Version210 extends Listener
@@ -24,6 +27,42 @@ class Version210 extends Listener
             return;
         }
 
+        $this->updateCompanies();
+
         Artisan::call('migrate', ['--force' => true]);
     }
+    protected function updateCompanies()
+    {
+        $company_id = session('company_id');
+
+        $companies = Company::cursor();
+
+        foreach ($companies as $company) {
+            session(['company_id' => $company->id]);
+
+            $this->updateSettings($company);
+        }
+
+        setting()->forgetAll();
+
+        session(['company_id' => $company_id]);
+
+        Overrider::load('settings');
+    }
+
+    public function updateSettings($company)
+    {
+        $sales_category = Category::income()->enabled()->first();
+        $purchases_category = Category::expense()->enabled()->first();
+
+        // Set the active company settings
+        setting()->setExtraColumns(['company_id' => $company->id]);
+        setting()->forgetAll();
+        setting()->load(true);
+
+        setting()->set(['default.sales_category' => setting('default.sales_category', $sales_category->id)]);
+        setting()->set(['default.purchases_category' => setting('default.purchases_category', $purchases_category->id)]);
+
+        setting()->save();
+    }
 }
diff --git a/database/seeds/Categories.php b/database/seeds/Categories.php
index c74833575..463f84f85 100644
--- a/database/seeds/Categories.php
+++ b/database/seeds/Categories.php
@@ -64,8 +64,26 @@ class Categories extends Seeder
             ],
         ];
 
+        $sales_category = $purchases_category = false;
+
         foreach ($rows as $row) {
-            Category::create($row);
+            $category = Category::create($row);
+
+            switch ($category->type) {
+                case 'income':
+                    if (empty($sales_category)) {
+                        $sales_category = $category;
+                    }
+                    break;
+                case 'expense':
+                    if (empty($purchases_category)) {
+                        $purchases_category = $category;
+                    }
+                    break;
+            }
         }
+
+        setting()->set('default.sales_category', $sales_category->id);
+        setting()->set('default.purchases_category', $purchases_category->id);
     }
 }
diff --git a/resources/lang/en-GB/settings.php b/resources/lang/en-GB/settings.php
index 394c2910d..3a6f8335a 100644
--- a/resources/lang/en-GB/settings.php
+++ b/resources/lang/en-GB/settings.php
@@ -68,6 +68,8 @@ return [
         'description'       => 'Default account, currency, language of your company',
         'list_limit'        => 'Records Per Page',
         'use_gravatar'      => 'Use Gravatar',
+        'sales_category'    => 'Sales Category',
+        'purchases_category'=> 'Purchases Category',
     ],
 
     'email' => [
diff --git a/resources/views/purchases/bills/create.blade.php b/resources/views/purchases/bills/create.blade.php
index b0fe97801..19ebd4c6d 100644
--- a/resources/views/purchases/bills/create.blade.php
+++ b/resources/views/purchases/bills/create.blade.php
@@ -194,7 +194,7 @@
 
                     {{ Form::textareaGroup('notes', trans_choice('general.notes', 2)) }}
 
-                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('default.category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=expense']) }}
+                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('default.purchases_category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=expense']) }}
 
                     {{ Form::recurring('create') }}
 
diff --git a/resources/views/purchases/payments/create.blade.php b/resources/views/purchases/payments/create.blade.php
index 57fc19ec6..46844b047 100644
--- a/resources/views/purchases/payments/create.blade.php
+++ b/resources/views/purchases/payments/create.blade.php
@@ -30,7 +30,7 @@
 
                     {{ Form::textareaGroup('description', trans('general.description')) }}
 
-                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('default.category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=expense']) }}
+                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('default.purchases_category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=expense']) }}
 
                     {{ Form::recurring('create') }}
 
diff --git a/resources/views/sales/invoices/create.blade.php b/resources/views/sales/invoices/create.blade.php
index defccec38..68de6d3ec 100644
--- a/resources/views/sales/invoices/create.blade.php
+++ b/resources/views/sales/invoices/create.blade.php
@@ -196,7 +196,7 @@
 
                     {{ Form::textareaGroup('footer', trans('general.footer'), '', setting('invoice.footer'), ['rows' => '3'], 'col-md-6') }}
 
-                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('defaults.category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=income']) }}
+                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('default.sales_category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=income']) }}
 
                     {{ Form::recurring('create') }}
 
diff --git a/resources/views/sales/revenues/create.blade.php b/resources/views/sales/revenues/create.blade.php
index c1c23ab06..dbbb3495d 100644
--- a/resources/views/sales/revenues/create.blade.php
+++ b/resources/views/sales/revenues/create.blade.php
@@ -30,7 +30,7 @@
 
                     {{ Form::textareaGroup('description', trans('general.description')) }}
 
-                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('default.category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=income']) }}
+                    {{ Form::selectAddNewGroup('category_id', trans_choice('general.categories', 1), 'folder', $categories, setting('default.sales_category'), ['required' => 'required', 'path' => route('modals.categories.create') . '?type=income']) }}
 
                     {{ Form::recurring('create') }}
 
diff --git a/resources/views/settings/default/edit.blade.php b/resources/views/settings/default/edit.blade.php
index e18c01914..b5c8bbc46 100644
--- a/resources/views/settings/default/edit.blade.php
+++ b/resources/views/settings/default/edit.blade.php
@@ -22,6 +22,10 @@
 
                 {{ Form::selectGroup('currency', trans_choice('general.currencies', 1), 'exchange-alt', $currencies, setting('default.currency'), []) }}
 
+                {{ Form::selectGroup('sales_category', trans('settings.default.sales_category'), 'folder', $sales_categories, setting('default.sales_category'), []) }}
+
+                {{ Form::selectGroup('purchases_category', trans('settings.default.purchases_category'), 'folder', $purchases_categories, setting('default.purchases_category'), []) }}
+
                 {{ Form::selectGroup('tax', trans_choice('general.taxes', 1), 'percent', $taxes, setting('default.tax'), []) }}
 
                 {{ Form::selectGroup('payment_method', trans_choice('general.payment_methods', 1), 'credit-card', $payment_methods, setting('default.payment_method'), []) }}