Click Grade Setup on the left side of your course
Next to Categories click the add button to create a category
Fill in the following information:
b. Total Points should be chosen (If you are not syncing the gradebook with PowerTeacher pro, you can choose total points or percentage) (required)
c. Decide if you want the system to lowest score(s) (up to 10 scores)
Click Create
Complete steps 1-4 again to create additional categories
Click Save Changes