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How to define Item Categories in SAP | What is an Item Category

In this SAP tutorials, you will learn what is an item category and how to customize new item categories in SAP SD. using transaction code VOV7. Before configuration of item categories, let discuss briefly about item category.

What is an item category?

An organization segregate the goods and services in to various categories such as item price, standard items, item discounts, etc. These categories under which items are placed are called as item categories.

Purpose of Configuration

In this activity you define item categories that determines how the items will behave within a sales document. The item category with sales document type controls the flow of a sales documents.

Configuration Values

Item CategoryDescription
ISTDStandard Items
IFREFree Items

How to create item categories in SAP

Standard SAP system delivers with various predefined item categories, you can use this predefined item categories as per your requirements. If required you can create new item categories in SAP as per the requirements of project.

Navigation Path

SAP R/3 Role MenuCreate item category
Transaction CodeVOV7
IMG PathSPRO > IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Items > Define Item Categories

Step 1: – Enter Tcode “VOV7” in the SAP command field and enter.

maintain item categories SAP Tcode

Step 2 : – On change view maintain item categories overview screen, displays the list of existing item categories. Click the new entries button to create new item category as per client requirements.

Create new item categories in SAP

Step 3 : – On new entries item category screen, update the following details.

  • Item Category : – Update the key that identifies an item item category in SAP.
  • Update the name of item category.
  • Update billing relevance as A ( Delivery related bulling document) and for Pricing as X (Pricing standard).
  • Choose check option for business item, Scheduled line allowed, Wght/Vol.Relevant, Credit active, Determine cost.
  • Update other required fields as per requirements of business.

define Item Categories in SAP

After maintaining all the required details of item category, choose save button on the standard toolbar and save the configured item categories in SAP.