ITEM CATEGORY CONTROLS

Define item categories:

Transaction code: VOV7

Path:

IMG - Sales and distribution - Sales - Sales documents - Sales document

item - Define item category –

Choose stand item category Ex: Item category = [TAN] from position
button Select it, and go to details button.

Item type: [] Standard item

System process item that refer to a specific material differently then items
that don’t refer to a material Ex: TEXT items. As text items does not require
processing pricing, taxes, and weight and volume calculations.

Completion rule: [] Not relevant for completion

(It is for quotations and contract items). We can specify that a quotation is
complete only after its quantity has been fully referenced by subsequent
document.

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 Dependencies: In copy control sales document to sales document, check
update document flow option at item category level.

Ex: If the item category for quotations is “AGN”, then the value will be “8”.

Special stock: [] We can specify a separate stock ex: consignment stock of

material. In inventory management stock of materials must be managed
separately for reasons of ownership or location. Specify “W” for item category
“KEN” (consignment issue)

Billing relevance: [A] = Delivery related billing document.

The value determines what kind of billing document it has to generate for this
item. That is order related billing document or delivery related billing
document.

Billing plan type: [] We can assign billing plan type for this particular item
that is standard billing, periodic billing and milestone billing.

Billing block: [] The billing block indicator is used to block each item of this
category for billing.

Pricing: [X] = Pricing standard

It indicates whether the system automatically carried out pricing for this item.

Ex: For text item it is grade out.

Statistical value: [] = System will copy item to header totals.

It indicates whether the system takes the value of an item into account when it
determines the total value of document.

Business item: It allows the business data at header level differs with item
level business data. Business data: Business data is nothing but sales,
shipping and billing data that is called as a business

Data. Ex: We maintain payment terms in customer master. When we raise the
sales order for this customer the payment terms are copied into the sales
document header from customer master. If we do not maintain payment
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terms in the customer and we maintain payment terms in the sales document
header manually then those payment terms applies whole item in the sales
order. If we have number of items in the sales order and if we want to change
payment terms for particular line item, system allows us to do so, if business
item field has been checked. Otherwise system will not allow changing the
payment terms at item level.

Schedule line allowed: It indicates whether we can create schedule lines for
the item. Sales order items always will have a schedule lines. The items like
credit memo request and contracts do not have any schedule lines. The items
that have a schedule lines will be copied into the delivery document. The only
one item category that is text item has an exemption. For text items with or
without schedule lines we can create delivery documents.

Item relevant for delivery: It indicates whether a text or value item is

relevant during delivery processing. The item itself is not delivered. But it
serves only for information purpose in delivery documents.

Returns: It indicates the item is return item Ex: REN

Weight/volume relevant: This indicator enables the system to calculate

weight and volume of materials.

Credit active: This indicator enables to configure credit management

functions for this item.

Determine cost: This indicator enables the system to calculate cost of the
material of this item category (condition type VPRS is used to calculate the
cost price).

General control section

Automatic batch determination: This indicator enables the system to

determine batch automatically of this item category.

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Rounding permitted: If you check it system rounds of the quantity of the
material for this item category type.

Order quantity = 1: If you check it system enables one quantity for line item.
It does not accept more than one quantity.

Incompletion procedure: [20]: Incompletion procedure has been defined in

IMG and assign to item category of this type. System follows this incompletion
procedure and remains the end user if he does not maintain any values at item
category level in the sales document.

Partner determination procedure: [N]: Partner determination procedure

“N” has been defined and assigned to item category. So that system follows
this partner determination procedure at item level and decides itself sold – to
– party, ship – to – party, bill – to – party and payer for this item.

Text determination procedure: [01]: Text determination procedure 01 has

been defined and assigned to item category of this type (TAN). So system
follows this text procedure to determine output.

Item category statistics group: [1]: It specifies a statistics group for this
item category and helps to determine which data the system should update in
LIS.

Screen sequence group: [N] = Item

It controls which screens we see during the particular transaction and in

which sequence they appear. Ex:We can differentiate sequence of screens in
inquires and quotations with sales order.

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Status profile: [] status profile can be defined and assigned to the item
category that defines use status by which we can restrict the user to access the
item.

Create PO automatically: This indicator used in third party and individual

purchase order items where the system has to generate purchase orders
automatically when R/3 is connected to ALE (application link enabling).

Configuration strategy: [] It controls checks and processes that are run

automatically or are allowed during configuration. System takes this value
while we configure of material of item category of configuration material.

Ex: Item category TAC = Variant configuration.

Material variant action: [] It controls how the system reacts when it

determines that an existing configuration is already used as a stock able type.

ATP Material variant: [] = No ATP check

We can specify ATP check for material variants in the variant configuration.

Structure scope: [] = Do not explode material structure. This field will be

used for BOM items.

 BOM: When specific material consists of number of items and those items
can be sold as individual items, then that particular item is called as a BOM.

Ex: [Computer]: As computer consist of header item (monitor) as well as sub

items (keyboard, mouse, hard disk, etc). Business treats this item as a single
item and sells the item to the customer as one. When we raise the sales order
we have to specify only header item that is monitor. Then system
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automatically explodes remaining items as a BOM. The BOM can be single
level or multi level. The value of this field determines whether the item is a
BOM item. If it is so, how it should be exploded.

Application: [] As the BOM can take place in production planning, materials

management, sales and marketing areas. System should know where it is to be
applied. As it is a sales area we have to specify as SD01 that is forsales and
distribution.

Variant matching: This will activate variant determinations during variant

configuration of the material.

Create delivery group: [Delivery group]: In the sales order if there are
items with different schedule lines then we can create delivery group for all
items into a single delivery with latest schedule line confirmed quantity of line
item.

Ex: If we have three items with delivery dates that is today, tomorrow and day
after tomorrow. Then we have to specify in the sales order in overview screen
shipping tab specify the delivery group number in delivery group field. Then
system confirms latest delivery date for all items in the sales order. As the
BOM contains number of items, the sub – items may not be confirmed by the
system on a single day. Then system reschedules all items confirmed quantity
dates with same or latest schedule line and creates delivery group.

Manual alternative: It allows choosing alternatives for BOM items manually.

Check parameter affectivity: Parameter affectivity is a concept through

which we can change the property of material or product.

Ex: Seasonal changes (color) to a certain period. It is integrated with

engineering changes management cross functionality function.

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Value contract material: [] The system copies value contract item that we
specified here into the value contract, if it has not already been maintained in
contract.

Contract release control: [B]: Here we can specify the system responses
when the target value of value contract has been reached while releasing the
contract.

Repair procedure: [] We can assign repair procedure for service items.

Billing form: [] The billing form specifies whether a flat rate or the dynamic
items are invoiced individually when performing billing using a resource
related billing document (it is for service items).

DIP profile [Dynamic Item Processor]: We can assign dynamic item

processor profile for dynamic item. Dynamic item processor is a toll that the
system uses to summaries data into dynamic items in sales price calculation,
resource related billing or data determination.

 Dynamic items: Customer service items are called as dynamic items.

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FAQs

1. How to create customize item category?

2. What do you mean by Item Category Determination?

3. How by default item category group will be determined in material master?

4. What is the difference between item category group and item category?

5. What is the functionality of usage field? Explain with an example?

6. What is the functionality of higher level item category?

7. Explain the term Completion rule?

8. What is the functionality of special stock indicator?

9. What do you mean by billing relevance?

10. What is the functionality of billing plan?

11. Billing Plan type can be activated at what level?

12. Explain the term Billing Block? What is the functionality of it?

13. What is the functionality of Pricing?

14. What is the functionality of statistical value?

15. Explain the term Revenue Recongizition?

16. Explain the term Business Item with an example?

17. What is the functionality of Schedule line allowed?

18. For which business scenario we need to activate returns?

19. Explain the term Weight/Volume relevant?

20. What is the functionality of credit active and Determine cost?

21. What is the functionality of Order qty =1?

Contact globally for SAP SD training: Jaya ram Prasad

E mail: jayaramprasad26@gmail.com Mobile: +91 9866293649
22. What is the functionality of status profile?

23. What is the use of creation of PO Automatically? Fowl which business

process we need to activate it?

24. Explain the term Structure Scope and Application?

Contact globally for SAP SD training: Jaya ram Prasad

E mail: jayaramprasad26@gmail.com Mobile: +91 9866293649