Supply chain | Supply Chain Management, Commerce

Linking Products to a Procurement category

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Posted on by Indiguna

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Hello,

I do understand the need for attaching a Procurement category to an Inventory item if PR is mandatory to purchase stocked items as below.

"Because the Procurement category is mandatory in PR you must link those stocked items to a category' - Please validate this.

On the other hand, I am wondering the actual purpose of linking products to a Procurement category when users need place a PR for a non-stock item. Such as Accommodation or Computers.

I have seen an environment where different Hotel Rooms are setup as products (Service/ Item) and linked these to Accommodation procurement category.

Would there be a valid reason to go this route?

My understanding is that if you create a PR for a Service/ item for company usage - these need only procurement categories. no need to link an item. Users can add this expense details (Such as Hotel name) in the PO line text to show on the confirmation.

Can someone validate my understanding here please?

Thanks!

Indiguna

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Indiguna 317 on at

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RE: Linking Products to a Procurement category

Ok, thanks for the explanation.
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BillurSamdancioglu 17,745 Most Valuable Professional on at

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RE: Linking Products to a Procurement category

Hi,

As an example, we created ine category as office expenses. Seperated items as printer, computer etc. Each item is set as a dimension. And expense accounts are set as to include item dimension. While item dimension is copied auto on item master, it is defaulted to PO. So we can have our trial balance of expenses per item. And from AP reporting also we can see the reports per category which shows as office expenses.
Indiguna 317 on at

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RE: Linking Products to a Procurement category

Hi Billur

thanks for your answer. Can you elaborate this reason with an example please? I am not sure what it means.

Thanks!

Indiguna
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BillurSamdancioglu 17,745 Most Valuable Professional on at

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RE: Linking Products to a Procurement category

Hi,

There can ve various reasons for that. One of them that I can name is to use item code as a dimension. But reporting details as category and link to GL account.