Configuration of the Item Category 
Use
You can use this function to assign an individual item category to order items with products that are delivered by external vendors.
A separate item category for third-party items is necessary in order to determine which items are relevant for billing.
Functional Scope
Third-party items only allow order-related billing (according to the order or delivery quantity), while for stock items delivery-related billing is also possible. Furthermore, you can assign an item category with a special ATP profile to items with products that are exclusively delivered by external vendors. Make settings in SAP Advanced Planning and Optimization (SAP APO) for this profile so that the system executes sourcing directly at external vendors, and does not assess internal locations.
Activities
To determine the item categories, make the following settings:
· Assign a special item category group in the product master data to externally procured products that are delivered exclusively by external vendors.
· Configure the item categories for third-party items. In total, you require four item categories:
¡ Item category 1: For initial determination of the item entered by the user for products that are delivered by both internal locations and external vendors.
For the standard transaction type TA the item category is TAN. Set up an ATP profile for these item categories that takes internal locations and external vendors into account. Billing relevance is either order-related or delivery-related.
¡ Item category 2: For initial determination of the item entered by the user for products that are delivered exclusively by external vendors.
For the standard transaction type TA the item category is TANT. Set up an ATP profile for these item categories that initiates sourcing directly at external vendors. Billing relevance is order-related (according to the order or delivery quantity).
¡ Item category 3: For the main item after ATP check and sourcing in SAP APO have taken place. For the standard transaction type TA the item category is TAPA. Do not assign an ATP profile to this item category. It is not relevant for billing.
¡ Item category 4: For generated third-party subitems for products that are delivered by both internal locations and external vendors. Set up an ATP profile for these item categories that takes internal locations and external vendors into account. Billing relevance is order-related (according to the order or delivery quantity).
To use order-related billing according to delivery quantity, you have to ensure that all vendors confirm the delivery quantity via shipping notifications. Make the required setting of an appropriate confirmation control key in vendor master data in SAP R/3.
· Configure item category determination according to the following table. The standard transaction type TA is taken as the transaction type in this example:
Business transaction type |
Item category group |
Item category use |
Item category of higher-level item |
Item category |
TA |
|
|
|
Item category 1 |
TA |
Externally procured products |
|
|
Item category 2 |
TA |
|
RBA main item |
|
Item category 3 |
TA |
Externally procured products |
RBA main item |
|
Item category 3 |
TA |
|
RBA main item: TPOP |
Item category 3 |
Item category 4 |
TA |
Externally procured products |
RBA main item: TPOP |
Item category 3 |
Item category 2 |
· Process copy control for item categories, specifically source item category 3 and target item categories 2 and 4.