Let be a groupoid acting on a set and let be a -graded ring with graded local units. We study the main properties of the category of -graded -modules and adjoint functors between categories of this kind. We characterize the latter in terms of tensor-like and hom-like functors. As an application we obtain a characterization of equivalences between such categories in the spirit of Morita theory. Then we introduce restriction and induction functors between categories of type and show that many functors between such categories can be realized naturally as a restriction or induction functor. This includes the forgetful functor, the functor associating a graded -module with the -graded module formed by the sum of the homogeneous components of degree in subgroupoid , and the one associating it with the collapsing of homogeneous components in cosets modulo for a wide subgrupoid. We characterize when a restriction or induction functor is an equivalence of categories. Finally, we prove that is always equivalent to the category of modules over a ring with local units and, generalizing a result of Menini and Năstăsescu, we characterize when is equivalent to the category of modules over a unital ring.

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