general item category......

[Former Member]

some of the imp questions i faced in interview.

1)What is the difference between general item category group and item category group ( sales org2 in MMR)?

2)What do you mean by drop shipment?

could you please help me in out for above answers.

[Former Member · Accepted solution]

hi venkat,

Item Category determines the processing of any Item/material that we enter in a sales order and in this way it also effects the procesing of any sales doc in which it is used.

<b>Item Category Group</b> is one of the component which along with the Sales Doc Type, The Item Usage and Higher Level Item Category decide about the Item Category in a sales doc.

for example we can ERLA as item cat group and carry out the header level pricing or we can LUMF and do the item level pricing in case of a Sales BOM.

General item category group talks about further classification of a material. Like NLAG- non stock material can be used to identify bom header items, service items.

Drop shipment is a concept, where until the time of delivery we dont know for whom the goods are going to be shipped. so we just create a drop ship customer for the sold to party and complete the order. Depending on the ship to customer we change the address accordingly and send the goods.

Hope it helps. Pl reward if useful.

Thanks

Sadhu Kishore

[Former Member]

2)Drop shipping in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer . The retailers make their profit on the difference between the wholesale and retail price.

Ramki

[Former Member]

firstly thanx a lot for your reply..could you please eloberate of where this transaction of drop shipment takes place with transaction code.