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Answer Posted / syamala
Item category controls the processing of an item in a sales
order.
The item category is determined based on the Sales Document
Type, Item Category Group, Usage, Higher Level Item, and
Proposed Item Category.
SAP Std. Example:
While creating a non-stock material or services,
DIEN is proposed in both cases for item category group,
because processing in both material types is identical, ie.
Pricing is carried out for both, but no AVC is carried out.
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