What is the Function of item category group?

Answer Posted / rvk

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.

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