In terms of MM – PUR: -An identifier indicating the characteristics of an item.
The item category determines whether the following are mandatory or permitted for an item:
Material Number, Account assignment, Inventory Management in the SAP system, Goods Receipt & Invoice Receipt
In terms Advertising Management (IS-M-AM):
Characteristics that defines sales relevant features of document items including planning, pricing, production, billing etc
Item category plans a vital role in MM. It is a key, which determines how the procurement of the material & services is to be controlled for the particular item.
Depending upon the item categories the scenario of purchasing documents varies / changes.
Document types of item category: -
1. Standard
2. L – Sub contracting
3. K – Consignment
4. B – Limit
5. U – Stock Transfer
6. D – Services
7. T – Text
8. S – Third Party

Account Assignment Category (A): -
It determines which A/C Assignment data is necessary or required for the particular item
Different Types: -
1. 1 - Third Party
2. P - Projects
3. K – Cost Center
4. A - Asset
5. C - Sales order
6. U - Unknown etc.


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