Difference between Material type and Item category

[Former Member]

What is the difference between Material type and Item category?

We can differentiate different kind of materails according to material type then why do we have Item category which is also more or less on the same lines.

Both can be considered as a terminology in SAP to group similar kind of materials.

Please let me know the exact difference between the two?

[Lakshmipathi · Accepted solution]

Dear Christino

We can list out so many differences.

When you create a material master record, the material type you choose determines:

- Whether the material is intended for a specific purpose, for example, as a configurable material or process material

- Whether the material number can be assigned internally or externally

- The number range from which the material number is taken

- Which screens appear and in what sequence

- Which departmental data you may enter

- What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both

Together with the plant, the material type determines the material's inventory management requirement; that is:

- Whether changes in quantity are updated in the material master record

- Whether changes in value are also updated in the stock accounts in financial accounting

In addition, the accounts affected by a material entering or leaving the warehouse depend on the material type.

-Most importantly, Users can be authorized to create materials of specific material types but not based on item category

- Item category will define whether the material should be valuated for stock or it should be considered as non-stock

- Pricing is carried out based on Item Category and not based on Material type

thanks

G. Lakshmipathi

[Former Member]

Hello,

Matrerial type is used to group together materials with the same basic attributes. For exmples: Beverages, Spares, Finished products, raw material ..etc.

Material type controls the number ranges, screens and it sequence, procurement tyep..etc.

Item categories are defined to provide additional control functions for the sales documents and thus meet the demands resulting from different business transactions. A separate control is defined for each of these item categories.

Prase

[Former Member]

Like Account group controls Customer master, similarly Material type controls the material master,i.e. what will be the number range,which tabs will be displayed etc. Example of material type are Trading goods, packaging material,Finished product,etc.

Whenever you create a material, you have to specify the material type & without material type you can not create a material.

Item category controls how the material will behave in a sales document, like whether price is applicable or not,deliverable or not,billing will be from order or from delivery etc.

Example of Item category are TAN,TANN,TAD,TAS,AGN,AFN etc.

I hope, it is clear.

Regards

Pradyumna

[former_member184555]

Hi

Item Category controls the behaviour of the item in that particular document. The below scenarios will give you more clarity...

1. Material X behaves in a different way if the Item Category is TAN (Billing, pricing etc.,)

2. Same material in the same document behaves differently if the item category is TANN - free of charge

item.

3. Same material in the same document behaves in a different way if the item category is TAS (third party item)

4. Same material in different document behaves differently if the item categories are AFN, AGN (Inquiry or Quotation ) in terms of Billing relevance etc.,

If you go through the settings in different fields of standard item categories(VOV7), you can better understand the functionality.

Rgarding the Material Type - it is almost like Account Group for the Customer Master. It controls the number ranges, fields and views in the Material master.

Thanks,

Ravi

[former_member204513]

Item category

An indicator that defines the characteristics of a document item.

For example, the item category controls the type and scope of:

Pricing

Billing

Delivery

Inventory posting

Transfer of requirements

Items in stock, and value and text items are item categories.

Example:-TAN,TANN,TAC,TAE etc..

Material type

A grouping together of materials with the same basic attributes such as raw materials, semifinished products, or finished products.

All materials must be assigned to a material type which determines:

Whether the material is intended for a specific purpose such as a configurable material or process material

Whether the material number can be assigned internally or externally

The number range from which the material number is drawn

Which screens appear and in what sequence

Which user department data you may enter

What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both

Example:- FERT,BANS,HALB,ROH etc..

I hope it will clear for you,

Regards,

Murali.