How are categories and products connected?

The I an issue I can't understand.

I think it would be logical that in the Configuration system there is Categories. Sublevel a category and under that the products.

But I seems to me that categories and products does not connect in that way?

Hi there,

The system you describe is actually the one working in the product management system.
The category menu is used only for managing the categories (editing their name, images...).
So I don't see what's troubling you.

Ok.
I will descibe my work flow:
I will make a categori and then put a product in it.
This is how I do:
I go to Configuration, Products tab, and choose categories.
I click New, fill out the main information.
Upload an image.
Click save and close.
Yes, I created a category.
Now I want to add a product to that category:
I go to Products>Add a product.
I found out, I had to click the product category I just made to bee in the right category when I add a product!
I click New, fill out the main information, type in the price, upload image
Save and close.
All right, allright that seems to work.
Is that the way to do it?

Great, thank you.