Item Category

Item category in Purchasing Documents --

Item category is one of the very important fields available and used in the purchasing documents. It has many control functions and helps in determining whether an ordered item:

• requires a material number
• requires an account assignment
• is to be placed in stock
• requires a goods receipt (GR) and/or an invoice receipt (IR)

In addition to the above it is also used for differentiating the different types of procurement processes and the types of stocks including special stocks available into the Standard SAP. In standard SAP different Item categories are available for different procurement types and each Item category has different characteristics: Some of the important Item Categories along with their characteristics are highlighted below:

  Standard

• Standard are goods that are to be procured externally.
• In this case, both goods and invoice receipts are possible

Consignment

• Consignment is items procured on a consignment basis.
• Material number is necessary
• Account assignments cannot be made for material ordered on consignment.
• Goods Receipt is necessary
• Invoice receipt not necessary
• Consignment stocks are managed separately and are not valuated

Subcontracting

• Subcontracting - assemblies ordered from a subcontractor (subcontractor requires items from you to produce such an assembly) are entered as "material to be provided" items.
• GR possible, IR necessary

Stock Transfer

• Stock transfer items occur in connection with stock transport ordering.
• Stock transport orders are a mechanism for the transfer of stock from one plant to another (that is, transfers involving transport over a longer distance).
• Material Number is necessary
• GR necessary, No invoice receipt

Third-Party

• Third-party - orders placed with vendors as part of a triangular business deal, latter to supply goods/ a service for a third party ( a customers).
• The goods recipient is in this case is customer.
• "Third-party" can be specified in the item category field of a requisition or purchase order.
• Account assignment is necessary
• GR and IR can take place

Limit

• Account assignment is necessary,
• Goods Receipt is not necessary
• Invoice Receipt is necessary
• Document Type FO is necessary