Functions of Item Category in SAP SD Process

I have seen that many candidates have failed to get firm clarity on item category and its functions. Here I have listed all possible functions covered in SAP SD Certification exam syllabus for C_TSCM62_64, C_TSCM62_65 and C_TSCM62_66. I will expand this blog as quickly as possible with sufficient screenshots to bring more simplicity on item category. Please make a valuable comment or write me an email if I have missed any function or you need more clarity on listed functions.

• Item category is used to define whether system run automatic pricing for an item or not

• Is it required the item appears on an invoice or not.
• Which fields are recorded in the incompletion log for respective item category if they were not entered in sales order.

• Item category is used to define which partner function belong to which item
• Whether the item appears on a delivery or not.
• The delivery relevance indicator is only for items without schedule line. For example, you can indicate that as a text item is relevance for delivery so that the system copies this into delivery document. Item category has indicator to define whether you can create schedule lines for the item
• You can configure an item category whether business data (incoterms and payment terms) at item level should differ from business data from header level.
• Bill of material:
• To determine how far the BOM should be exploding in the sales document, you need to define the extent of the structure of the item category of the main item.
• In customizing for item category, you control which item(s) are relevant to pricing and how you want to implement requirement transfer.
• All items in BOM that you want to control in the sales document must be flagged as ‘relevance for sales’.
• Item category is maintained as functions of copy control and updating the document flow.
• In document referencing, completion rule is defined at item category.
• Maintain value contract material at item category to determine account assignment, taxes and statistical update.
• Item category is used to define billing plan type.
• Billing relevance indicator is mentioned in item category. Indicator A is for delivery related billing and indicator B is for order related billing.
• Billing block is set at item category.