diff --git a/src/lib/category.js b/src/lib/category.js
index 50337e9d..9fde29d1 100644
--- a/src/lib/category.js
+++ b/src/lib/category.js
@@ -116,7 +116,7 @@ export function allVisibleTransactionCategories(allTransactionCategories) {
     return ret;
 }
 
-export function isCategoryIdAvailable(categories, categoryId) {
+export function isSubCategoryIdAvailable(categories, categoryId) {
     if (!categories || !categories.length) {
         return false;
     }
@@ -144,6 +144,26 @@ export function getFirstAvailableCategoryId(categories) {
     }
 }
 
+export function getFirstAvaiableSubCategoryId(categories, categoryId) {
+    if (!categories || !categories.length) {
+        return '';
+    }
+
+    for (let i = 0; i < categories.length; i++) {
+        if (categories[i].id !== categoryId) {
+            continue;
+        }
+
+        if (categories[i].subCategories.length <= 0) {
+            return '';
+        }
+
+        return categories[i].subCategories[0].id;
+    }
+
+    return '';
+}
+
 export function hasAnyAvailableCategory(allVisibleTransactionCategories) {
     for (let type in allVisibleTransactionCategories) {
         if (!Object.prototype.hasOwnProperty.call(allVisibleTransactionCategories, type)) {
diff --git a/src/lib/transaction.js b/src/lib/transaction.js
index 69b75678..fc80297e 100644
--- a/src/lib/transaction.js
+++ b/src/lib/transaction.js
@@ -9,8 +9,9 @@ import {
 } from './datetime.js';
 import {
     categoryTypeToTransactionType,
-    isCategoryIdAvailable,
-    getFirstAvailableCategoryId
+    isSubCategoryIdAvailable,
+    getFirstAvailableCategoryId,
+    getFirstAvaiableSubCategoryId
 } from './category.js';
 
 export function setTransactionModelByTransaction(transaction, transaction2, allCategories, allCategoriesMap, allVisibleAccounts, allAccountsMap, defaultAccountId, options, setContextData) {
@@ -25,8 +26,12 @@ export function setTransactionModelByTransaction(transaction, transaction2, allC
 
     if (allCategories[categoryConstants.allCategoryTypes.Expense] &&
         allCategories[categoryConstants.allCategoryTypes.Expense].length) {
-        if (options.categoryId && options.categoryId !== '0' && isCategoryIdAvailable(allCategories[categoryConstants.allCategoryTypes.Expense], options.categoryId)) {
-            transaction.expenseCategory = options.categoryId;
+        if (options.categoryId && options.categoryId !== '0') {
+            if (isSubCategoryIdAvailable(allCategories[categoryConstants.allCategoryTypes.Expense], options.categoryId)) {
+                transaction.expenseCategory = options.categoryId;
+            } else {
+                transaction.expenseCategory = getFirstAvaiableSubCategoryId(allCategories[categoryConstants.allCategoryTypes.Expense], options.categoryId);
+            }
         }
 
         if (!transaction.expenseCategory) {
@@ -36,8 +41,12 @@ export function setTransactionModelByTransaction(transaction, transaction2, allC
 
     if (allCategories[categoryConstants.allCategoryTypes.Income] &&
         allCategories[categoryConstants.allCategoryTypes.Income].length) {
-        if (options.categoryId && options.categoryId !== '0' && isCategoryIdAvailable(allCategories[categoryConstants.allCategoryTypes.Income], options.categoryId)) {
-            transaction.incomeCategory = options.categoryId;
+        if (options.categoryId && options.categoryId !== '0') {
+            if (isSubCategoryIdAvailable(allCategories[categoryConstants.allCategoryTypes.Income], options.categoryId)) {
+                transaction.incomeCategory = options.categoryId;
+            } else {
+                transaction.incomeCategory = getFirstAvaiableSubCategoryId(allCategories[categoryConstants.allCategoryTypes.Income], options.categoryId);
+            }
         }
 
         if (!transaction.incomeCategory) {
@@ -47,8 +56,12 @@ export function setTransactionModelByTransaction(transaction, transaction2, allC
 
     if (allCategories[categoryConstants.allCategoryTypes.Transfer] &&
         allCategories[categoryConstants.allCategoryTypes.Transfer].length) {
-        if (options.categoryId && options.categoryId !== '0' && isCategoryIdAvailable(allCategories[categoryConstants.allCategoryTypes.Transfer], options.categoryId)) {
-            transaction.transferCategory = options.categoryId;
+        if (options.categoryId && options.categoryId !== '0') {
+            if (isSubCategoryIdAvailable(allCategories[categoryConstants.allCategoryTypes.Transfer], options.categoryId)) {
+                transaction.transferCategory = options.categoryId;
+            } else {
+                transaction.transferCategory = getFirstAvaiableSubCategoryId(allCategories[categoryConstants.allCategoryTypes.Transfer], options.categoryId);
+            }
         }
 
         if (!transaction.transferCategory) {