How Labels Differ from Categories
The PPM module provides two ways to classify work items: labels and categories. They serve different purposes and operate at different scopes. This page explains the distinction.
Labels: free-form tags
Labels are the same tagging mechanism used across the Raytio platform (the FND label system). They are:
- Tenant-scoped — labels are defined at the tenant level and shared across all projects
- Free-form — any user with appropriate permissions can create a new label
- Many-to-many — a work item can have multiple labels, and a label can be applied to many work items
- Flat — labels have no hierarchy or grouping; they are simple name–colour pairs
Labels are best for ad-hoc, cross-cutting classification. Common uses include:
- Tagging work items by technology area (
frontend,backend,database) - Flagging items that need attention (
blocked,needs-design,quick-win) - Marking items for specific workflows (
ready-for-review,needs-qa)
Because labels are tenant-wide, they provide consistency across projects. A blocked label means the same thing in every project.
Categories: structured attributes
PPM categories are different. They are:
- Project-scoped — each project defines its own set of categories
- Structured — categories are defined with a name, description, and optional configuration by a project administrator
- Single-assignment — a work item belongs to at most one category (per category group)
- Managed — only project administrators can create or modify categories
Categories are best for structured classification that is meaningful within a specific project. Common uses include:
- Classifying work by functional area within the project (
User Management,Payments,Reporting) - Grouping items by module or component (
API,Web UI,Mobile) - Organising work by business capability (
Onboarding,Compliance,Analytics)
Because categories are project-scoped, different projects can define categories that make sense for their domain without polluting each other's classification schemes.
Comparison
| Aspect | Labels | Categories |
|---|---|---|
| Scope | Tenant-wide | Per project |
| Created by | Users with label permissions | Project administrators |
| Assignment | Multiple labels per item | One category per group per item |
| Structure | Flat (name + colour) | Structured (name + description + config) |
| Best for | Cross-cutting tags and flags | Domain-specific classification |
| Shared across projects | Yes | No |
When to use which
- Use labels for cross-cutting concerns that apply across projects — technology areas, workflow states, or ad-hoc tags. A work item can carry many labels at once.
- Use categories to classify work items by a structured attribute that is specific to a project, such as functional area, module, or business capability. A work item belongs to one category per category group.