To see an overview of a vocabulary's terms, select administer > categories > edit terms for the appropriate vocabulary. Alongside the list of existing terms is an Add Term tab, which brings you to the page for adding terms. The important fields here are Name and Parents. The name is what the user will be presented with in the selection box when choosing categories, and the Parents setting determines the hierarchy of the terms within the vocabulary.
The Description and Synonyms fields are virtually unused by core modules and can be left blank most of the time. The Weight setting controls the placement of the term in the list of terms belonging to that vocabulary.
When you click Submit to create a new term, you will be returned to the page for adding terms, to facilitate adding many terms quickly and easily.
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