Significance of Item Category / Account assignment category

[Former Member]

Hi All,

Can any tell what is the significance of Item Category / Account assignment category in Sap. Why it is used.

Regards,

Ravi

[Former Member · Accepted solution]

Hi

The account assignement comes into picture when you order the material as Indirect. In case of direct it gets valuated under raw material, semi finished, finished etc (Valuation class).

In Account assignment you assign a specific G/L account to a cost center. In reality you can have different cost centers like Production, Maintenance, Quality etc and different G/L accounts like Raw material consumption , machine tools, computer software, buildings, machineries etc.

Suppose if a machine has been procured for production purposes it gets accounted in the machineries G/L account and the cost is accrued by production. Same case if a measuring instrument is procured by Quality department it gets accounted in machineries G/L account and the cost is accrued by Quality department.

It helps in analysing the spend of each department as per the allocate d budget and also helps in allocating budgets to respective departments for future purposes.

Vishal..

[Former Member]

Hi Ravi,

Item category – Item categories are intended for special procurements (consignment, subcontracting, stock transport, services etc). These transactions are built in with several integrations internally.

Account assignment category - We use A/c Assn’t cat for direct consumption (procure to consume). In this case, We need to mention the account assignment i.e. cost center, Asset, sales order etc. When we use account assignment category we also need to give relevant accounting details like Cost center and G/L account , etc, for which this material cost will be charged.

For stock material don't give account assignment category

For direct consumption, give account assignment category with accounting details.

Hope it brings some clarity to you.

Thanks,

PNR