ITEM CATEGORY CONTROLS IN SAP

Item category controls the line-item data of sales document. In SAP item category is
a 4-char indicator which represents a specific line in a business transactions. For
different type of items, we have different item categories maintained in SAP. Each
item category has its unique functionality and impact.
For Example: Item category for normal item is ‘TAN’ and for text item its ‘TATX’ 
Transaction code for maintaining the sales item category is VOV7. 

Each field under item category have a unique role and functionality. In this blog we
will go through each field that can be maintained under the item category and how it
impacts the sales process.
1. Item type: - This field specifies the functioning of the line item. i.e. whether the
item is normal item (standard item) or Text item or value item or packing item. 
a. Standard or Normal item: It is the item which is sold to customers. 
b. Text item: It is the item which consists of some information and which we deliver
to customers along with the main product and which we never sell to customer. Ex. -
User manual, catalogue, booklet etc. 
c. Value item: It is an item which consists of certain value and which is delivered to
customers and which we never sell to customer. Ex. – Gift voucher etc.
d. Package item: It is the item which is used to pack the main item. Ex. – cold drink
bottle, Gas cylinder, etc. 
2. Business Item: It is a checkbox field. This field controls whether you user can
change the business data at item level or not. If we check this then system will allow
changing the business data at item level. If we uncheck this system will not allow to
change the business data at item level. The business data at item level will be
disabled 
Business data is the data, which is copies into sales order from sales, shipping,
billing Tab's of customer master. For example Incoterms, terms of payment etc. 
The table for business data is [VBKD]. 
3. Completion rule: This field controls when the status of line item should be
completed. In SAP standard it is applicable for below 4 item categories 
a. For inquiry “AFN” completion rule is “A” (item is completed with the first
reference). 
b. For quotation “AGN” completion rule is “B” (item is completed after full quantity
has been referenced. 
c. For quantity contract “KMN” completion is “C” (item is completed after the target
quantity is fully referenced
d.  For value contract “WKN” completion rule is “E” (item is completed after full target
value is referenced).
For example B -> Quotation -> item will be completed if full quantity is reference,
suppose we have a quotation line with quantity 100 => only 50 converted into order
then the quotation line will be still open until the order for the rest 50 quantity is
created 
* Completion rule is applicable only between sales document to sales document and
completion rule is not applicable between sales documents to delivery document.
That is the reason TAN does not have completion rule. 
Note: We have completion rule (+/-) in copy cony controls as well.
4. Schedule line allowed: It is a check box field. This field controls whether to
determine schedule line tab into sales document line item or not.
If we check this then only schedule line tab will be determine into sales document
line item.
If we uncheck this then schedule line tab will not be determined. 
In case a line item in the sales order is a value item or a text item then scheduling
tab is not required for that line, so this field will be unchecked.
The below item categories will have schedule line allowed uncheck:- G2N, L2N,
KMN, WKN, TATX 
5. Special stock: - This field is mainly used in individual PO, make to order,
consignment process. We have two types of special stocks: 
i) Consignment stock “W” (indicator) 
ii)  Make to order stock “E” (indicator) 
iii) Normally this field will be blank
6. Item relevant for delivery: - This field is only applicable for text item or value
item. This field is not applicable for standard item. If text item and value item is
relevant for delivery then check this field. 
7. Billing relevance: - This field controls whether item is relevant for billing or not
and it also controls whether item is order related billing or delivery related billing. 
a. The below item categories are not relevant for billing:- 
 [AFN, AGN, WKN, KMN, TATX, KLN, KBN, KAN] 
b. The below item categories are delivery related billing: - 
 TAN, KEN, TAB, TAQ, TAX => A
c. The below item categories are order related billing: - 
REN, KRN, BVN => B
G2N, L2N => C (order related billing status according to target quantity)
8. Returns: - This field controls whether item is delivering to customer or coming
back from customer. It also controls the accounting entry at the time of invoice. 
If we check this, then system will treat as return item and while creating invoice the
accounting entry will be as follows => Revenue Account Debit and Customer
Account Credit
If we check this, then system will treat as normal item and while creating invoice the
accounting entry will be as follows => Revenue Account Credit and Customer
Account Debit
The below item categories will have return check REN, KRN, G2N and KAN. 
9. Billing plan type: - If we maintain billing plan type for item category then it will be
applicable to line item in the sales document. If we maintain billing plan type in
document types then it will be applicable to total document. 
We have two types of billing plan : Periodic billing and Mile stone billing 1. Periodic
billing is billing on regular intervals. Ex. - monthly billing (Service and rental
contracts)
2. Mile stone billing is activity based billing i.e. billing based on work done. Ex. –
Construction industry & project industry (Railway). 
10. Weight / volume relevant: - If we check this system will calculate the weight
and determine it into sales document line item. 
11. Billing block: - If we maintain billing block here then it will be applicable to
particular line item in the sales document.
12. Credit active: - This field controls whether to update the line item value into
credit management or not. If we check this then only the item value will be update in
credit management. 
List of item categories which will have credit active uncheck => AFN REN KMN KBN
TAPS AGN KRN KLN KAN TAP BVN WKN G2N TAE TATX 
List of item categories which will have credit active check => TAN TAS TAX TAK
TAB L2N TAQ 
13. Pricing: - This field controls whether item is relevant for pricing or not. It also
controls whether item is relevant for normal pricing or free goods pricing (100%
discount) 
If the item is not relevant for pricing, then maintain => Blank (E.g. TATX, KLN, KBN,
KAN, TAE, TAP, TAPS, TAPA)
If the item is relevant for pricing, then maintain => X (E.g. AFN, AGN, TAN, BVN,
REN, G2N, L2N, KRN, KEN, WKN, KMN, LPN, TAQ, TAX, TAK, TAB, TAS)
If the item is relevant for 100% discount, then maintain => B (E.g. TANN)
14. Statistical value: - If we maintain this field then the line item value will not have
any effect on net value. The line item value will become inactive. 
Ex. – In BOM header pricing system will not determine pricing for components,
Because TAE is not relevant for pricing. If management is asking report on
component sales then we have to go to item category TAE and maintain pricing “X”
and also statistical value “X” then system will determine pricing for component but it
does not have any effect on total document value. 
15. Determine cost: - This field is a prerequisite to determine cost into sales
document. If we check this then only cost will be determine into sales document i.e.
‘VPRS’ condition type will be determined into sales document.

16. Automatic batch determination: - If we check this the batch number will be
automatically determine into sales document in line item. 
17. Rounding Permitted: - If we check this, and if order quantity is in decimals then
system will round off the decimal quantities to the nearest number. 
18. Order quantity = 1: - If we check this system will restrict each line item quantity
to 1. 
There are certain scenarios where business does not want the customer to order
more then one quantity of a product in a order, in that case we check this field. 
19. Incompletion Procedure:  It represents the incompletion procedure at the line
item level. SAP provides this control at the line item as well. In case we have a sales
order with multiple lines having different item categories, then their incompletion
procedure may differ.
20. Partner determination Procedure: It represents the partner procedure at the
line item level. In standard SAP partners in a sales order are determined at the
header and the same partners appear at the line item level as well. Automatic item
partner determination is not provided in standard SAP. One can enter a partner
manually at the line item level in the sales order creation/change mode or through a
custom development, but that partner should be assigned to the item procedure. 
Note: Partner determination customization is available at the sales document item
level only specifies which partner function should be allowed on item level and which
should not.
21. Status profile: - If we maintain status profile in document types then it will be
applicable to total document. If we maintain status profile in item category then it will
be applicable to particular line item in sales document. (Generally we will not
maintain status profile in line item in real time). 
22. Create PO automatic: - In third party process and IPO process while creating
sales order system automatically generates “PR”, but if we check this system
automatically generates purchase order “PO” (If we want automatic PO in third party
process along with ALE data for purchase order we have to check this). 

23. Value contract material: - This field will be maintained only for WKN item
category. In this we maintain some dummy material which will be determined into
value contract general document; because value contract general is not specific to 1
material and without material we cannot create a line item. 
24. Contract release control: - This field controls how system should response if
the release order value exceeds contract value i.e. to give warning message or error
message or no message.
25. Structure scope: - This field controls whether to explode BOM or not and it also
controls whether to explode single level BOM or multi-level BOM. 
If we want to explode single level BOM then maintain “A” 
If we want to explode multi-level BOM then maintain “B”.