Item Category
Definition
The item category determines whether the material defined in a purchase order item:
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 |
Subcontracting |
Goods can be received |
Stock transfer |
Material number necessary |
Third-party |
Account assignment necessary |
Limit |
Account assignment not 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
Consignment section 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
Subcontracting section 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
Carrying Out Stock Transfers Using Stock Transport Orders 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 "Pos with limits" or "limit orders"). 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.