SAP Purchase Orders Item Category

Definition

The item category determines whether the material defined in a purchase order item:

• Requires a material number
• Requires an account assignment
• Is to be managed as a stock item
• Requires a goods receipt (GR) and/or an invoice receipt (IR)

The following item categories are defined in the standard system:

Standard Item Categories in POs

Item category	Characteristics
Standard	Goods and invoices can be received
Consignment	Material number necessary No account assignments Material kept in stock GR necessary Invoice receipt not necessary
Subcontracting	Goods can be received Invoice receipt necessary
Stock transfer	Material number necessary GR necessary No invoice receipt
Third-party	Account assignment necessary GR and IR can take place
Limit	Account assignment not necessary GR not necessary IR necessary Document type FO necessary

Standard

Items of the category Standard are goods that are to be procured externally. In this case, both goods and invoice receipts are possible.

Consignment

Items of the category Consignment are items procured on a consignment basis. Account assignments cannot be made for material ordered on consignment. Consignment stocks are managed separately and are not valuated.

Consignment stocks are discussed in the section Consignment of the MM Inventory Management documentation.

Subcontracting

Order items of the category Subcontracting may represent finished assemblies ordered from a subcontractor, for example. Any components the subcontractor requires from you to produce such an assembly are entered as "material to be provided" items.

Subcontracting is discussed in the section Subcontracting of the MM Inventory Management documentation.

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).

The stock transport order is one of the special order types in Purchasing, and is discussed in the section Stock Transfer Using Stock Transport Order of the MM Inventory Management documentation.

Third-Party

Third-party orders are orders placed with vendors as part of a triangular business deal, instructing the latter to supply goods to or perform a service for a third party (for example, a drop-shipment to one of your customers). This means that the goods recipient is in this case the customer. "Third-party" can be specified in the item category field of a requisition or purchase order.

The third-party order is one of the special order types in Purchasing, and is discussed in the section Third-Party Processing of the MM Inventory Management documentation.

Limit

Limit items occur in connection with blanket purchase orders (which hence may also be referred to as "purchase orders with limits"). Blanket Pos can be used to procure a variety of materials or services up to a certain predefined maximum value (the value limit) from a vendor. The nature of the materials or services in question is generally such that the cost of and administrative effort involved in processing individual purchase orders is regarded as disproportionately high in relation to their value (e.g. purchase of office supplies and minor services required during the course of the year).

Blanket Pos have the document type FO. Instead of a specific delivery date, you can specify a validity period for the order.

Goods receipts or the entry and acceptance of services performed are not necessary in the case of a blanket PO and limit items. The invoices are posted directly with reference to the purchase order, provided that the specified value limit is not exceeded.

The account assignment need only be specified at the time of invoice entry.

For detailed information on the subject of value limits, refer to the documentation

MM External Services Management.

• 
  
• Specifying Incoterms and Purchase Orders Shipping/...
• Incoterms and SAP Purchase Orders Shipping/Deliver...
• Units of Measure in SAP Purchase Orders
• Specifying Multiple SAP Purchase Orders Account As...
• Specifying Single Account Assignment SAP Purchase ...
• Account Assignment SAP Purchase Orders
• Creating a SAP Purchase Order With Zero Value
• Maintaining a Delivery Schedule for a SAP Purchase...
• Creating a SAP Purchase Order by Copying or Refere...
• Creating a SAP Purchase Order PO - Without a Maste...
• Creating a SAP Purchase Order - With a Master Reco...
• Creating a SAP Purchase Order Manually (Vendor Kno...
• Creating a Purchase Order using SAP
• SAP Purchase Orders Item Category
• What is Purchase Order in SAP?