read this help file.
Using the item category group, you group together different material
types for item category determination from the SD view. For every
material type, you can define a default item category group which is
proposed by the SAP System when you create a material master record. For
more information on setting default values please refer to the section
"Define material type defaults.
In the sales document, the system determines the item category from the
item category group of the material and from the sales document type and
proposes this item category in the document. You assign item categories
to sales order types and item category groups elsewhere. You can find
further information on this in the section "Assign item categories".
If you define your own item category groups, the keys should start with
the letter Z, since this name convention is kept free in the standard
SAP System for this purpose.
1. Check whether you can use the item category groups in the standard
2. If you want to create new item category groups, you must enter an
alphanumeric key with a maximum of 4 characters as well as a textual
In this menu option, you define item categories for sales documents. The
item categories that are contained in the standard SAP R/3 System
together with the sales document types represent the usual business
You have the following options for defining your own item categories:
o Copy an existing item category and change it according to your
o Create a new item category.
If you define your own item categories, the keys should begin with the
letter Z since SAP keeps this range free in the standard system and
protects it from being overwritten during release upgrades.
If you define your own item categories, you should copy similar item
categories that are defined by SAP and make the required changes there.
In this case, all the specifications of the existing item category are
copied - even the assignment to the sales document types. In particular,
the data for example concerning partner determination, pricing or
document flow which you do not edit on the detail screen of the item
category is also copied. Consequently, you can test the new item
category for the settings made without having to edit the other menu
When copying sales document types, item categories and schedule line
categories, the SAP system automatically creates a log with the copied
data. Using the log, you can check whether all of the copied data
applies to your item category or whether you must make changes.
If you create or copy a new item category that is to be used for a
delivery, you must also define a delivery item category with the same
name. The SAP system automatically transfers the item category that was
found for the sales document item into the delivery item.
If you only need to make minor changes to the existing item categories
(e.g. changed description), then you change this as appropriate. Minor
changes refer to parameters that have no controlling character.
If you need to make further changes, define a new item category by
copying a similar item category supplied in the standard system and then
change this according to your requirements. In this way, you can for
example define an item category for which a certain type of pricing is
carried out, or for which the data must not differ at header and item
level but which otherwise matches an existing item category.
If you want to create an item category, proceed as follows:
1. Enter an alphanumeric key with a maximum of four characters.
2. Maintain the respective specifications of the detail screen.
3. Also consider the additional functions on item category level and
the item-specific settings in the general sales and distribution
The item category group determines how a material is processed in the sales order. It defines, for example, that pricing does not take place for a free of charge item, such as a business gift; or that inventory management is not carried out for a service. When processing sales and distribution documents, the system uses the item category group to determine the item category. The system determines the item category based on the item category group of the material and the current business transaction, and proposes it in the respective document.
When creating the material types non-stock material and services, DIEN is proposed in both cases for the item category group, because the order processing for both material types is identical: for example, pricing is carried out for both, but no availability check.
Hope this helps else let me know yr mail ID, will send you a document.
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<b>Item categories</b> 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. For example, the functions of a standard item are completely different from those of a free-of-charge item or a text item.
<b>Item Category Control</b>
The system uses an item category to process a material differently in each sales document type. For example, you can define a different control for a material in an inquiry and a material in an order.
<a href="http://help.sap.com/saphelp_erp2005/helpdata/en/dd/55fb13545a11d1a7020000e829fd11/content.htm">ITEM CATEGORIES</a>
An item category group is defined in the material master record. For example, in the standard SAP System, the item category group NORM is defined for materials kept in stock and the group DIEN for services and non-stock material.
Item category is one of the controling factor for sales document, it will control the perticular item of sales order.
It is an indicator that defines the characteristics of document item.
Ex: TAN - Standard, TANN Free of charge, TAW Value
General Item cat Group : by default NORM ( depending upon the material type system automatically proposes item category Group in material master system takes this general item category group as one of the factor to determine item category of line item )
Ex: Standard Item, Text Item, Value item, Free of Charge item
In addition to NORM these are item category groups
rewards if it helps
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.
Item Category Group 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.
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