Answer / anirban sinha (wipro ltd)

item category determines how the item is going to behave in the sales order process.for example it tells us whether the item is relevant for deliveries or not, whether it will be billed or not, schedule lines should exist or not etc. but a material type states what type of material it is, eg whether it a trading good HAWA or a finished product FERT. the material type distinguishes the type of material like packing material or a stocking / non-stock material.but the item category determines the behavior of the material in the order cycle post the sales order creation

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