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Outlook categories

I recently changed a customer's email from an SBS exchange Server to Ownwebnow hosted exchange. They were running Outlook 2007. They had created several categories for their contacts before we did the change over. Now, when they try to create a new Contact and use the Category Drop Down box, not all the Categories they created show up. I upgraded them to Outlook 2010 but get the same problem. The Categories are there because when I do a list of Contacts I can see them assigned to different Categories. For instance, there is a Category called Unions with 10 contacts assigned, but when we try to create a new contact and add it to the Unions Category, the Drop down box doesn't show Unions. Any ideas?
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They were migrated using an import of the pst file from the SBS exchange server. The Categories are there but only a few are color coded. Is there a way to Color Code the Categories without re-creating them or is that what the Outlook Today upgrade does?
Thanks apache. The suggested link and solution did the trick. Unhappy, difficult customer is now happy and quiet.
No problem

Always happy to help someone with a difficult customer