Unknown relationship I have a problem with a database design:

I have an EReport. This EReport will have a QAPCategory. 
User must select a QAPCategory from an set of QAPCategory.

To know which QAPCategory can be selected I have done this design:



Is this correct? Is this a circular reference?
There's no need for both relationships.

Generally speaking, your category table should have one row per category, not per fact table row.

It's OK if multiple EReport rows refer to the same category record, but having a category record per EReport record defeats the purpose of normalizing in the first place.