diff --git a/C4/Branch.pm b/C4/Branch.pm
index 47cfd6c59e..475516875c 100644
--- a/C4/Branch.pm
+++ b/C4/Branch.pm
@@ -480,12 +480,20 @@ sets the data from the editbranch form, and writes to the database...
 =cut
 
 sub ModBranchCategoryInfo {
-
     my ($data) = @_;
     my $dbh    = C4::Context->dbh;
-    my $sth    = $dbh->prepare("replace branchcategories (categorycode,categoryname,codedescription,categorytype) values (?,?,?,?)");
-    $sth->execute(uc( $data->{'categorycode'} ),$data->{'categoryname'}, $data->{'codedescription'},$data->{'categorytype'} );
-    $sth->finish;
+	if ($data->{'add'}){
+		# we are doing an insert
+		my $sth   = $dbh->prepare("INSERT INTO branchcategories (categorycode,categoryname,codedescription,categorytype) VALUES (?,?,?,?)");
+		$sth->execute(uc( $data->{'categorycode'} ),$data->{'categoryname'}, $data->{'codedescription'},$data->{'categorytype'} );
+		$sth->finish();		
+	}
+	else {
+		# modifying
+		my $sth = $dbh->prepare("UPDATE branchcategories SET categoryname=?,codedescription=?,categorytype=? WHERE categorycode=?");
+		$sth->execute($data->{'categoryname'}, $data->{'codedescription'},$data->{'categorytype'},uc( $data->{'categorycode'} ) );
+		$sth->finish();
+	}
 }
 
 =head2 DeleteBranchCategory
diff --git a/koha-tmpl/intranet-tmpl/prog/en/modules/admin/branches.tmpl b/koha-tmpl/intranet-tmpl/prog/en/modules/admin/branches.tmpl
index af1776f67a..70fc20b2fc 100644
--- a/koha-tmpl/intranet-tmpl/prog/en/modules/admin/branches.tmpl
+++ b/koha-tmpl/intranet-tmpl/prog/en/modules/admin/branches.tmpl
@@ -223,6 +223,11 @@
     <h3><!-- TMPL_IF NAME="categorycode" -->Edit Group <!-- TMPL_VAR NAME="categorycode" --><!-- TMPL_ELSE -->Add Group<!-- /TMPL_IF --></h3>
     <form action="<!-- TMPL_VAR name="action" -->" name="Aform" method="post">
     <input type="hidden" name="op" value="addcategory_validate" />
+	<!-- TMPL_IF NAME="categorycode" -->
+	<input type="hidden" name="add" value="0">
+	<!-- TMPL_ELSE -->
+	<input type="hidden" name="add" value="1">
+	<!-- /TMPL_IF -->
     <fieldset class="rows">
         
         <ol><li>