Follow these simple steps;

1. Go to Activities (on side bar) and click.
2. You will see button Manage Categories. Click the button.
3. Click New Categories button. It should pop up a 'New Category' modal.
4. Select Time Entry Category at Category Type.
5. Enter Name, select Billing Method and Tax (if necessary). Enter the Description of this time entry. Don't worry, you can always change it later when you create your Time Entry unbilled activity.
6. Set the Permission Group.
7. Choose if you want this Time Entry Category to be available for your Co-Counsel.
8. Click Create Category once you finish.