procurement categories vs Item groups in AX2012 r3

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Posted on by Community Member

Dear Experts,

Can any body explain me the basic difference between procurement category and item groups with examples so that it will be easy for to get the base idea.

Also about the product category .

im not able to get clear idea regarding these terminologies.

Thanks in advance.

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krishna.rao@dax 3,006 on at

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Procurement category is purpose of reporting purpose.

Item groups are meant for financial updation related to inventory

technet.microsoft.com/.../hh227365.aspx

daxing2012.wordpress.com/.../procurement-categories

technet.microsoft.com/.../aa572815.aspx

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Ludwig Reinhard Microsoft Employee on at

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Hi Seenu,

In addition to what Krishna already mentioned, procurement categories can be used instead of items - that are linked to an item group - when it comes to purchasing goods and services.

Especially if your company requires using purchase orders for all purchases, procurement categories can be used as alternatives to service items for purchasing purposes, which was not possible in earlier AX versions. That is, you do not need to setup a service item and all the related stuff if you just want to purchase for example some consulting services.

There are a lot of additional possible usages of procurement categories when it comes to reporting and analyzing purchase transaction and not to forget you can use them for specific local reporting such as Intrastat reporting within the European Union.

Please have a look at the links provided above for additional details.

Best regards,

Ludwig

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guk1964 10,888 on at

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Note also with item groups they can be used in forecasting, and be linked to a financial dimension, so there should be cross functional discussion and agreement.

Procurement categories can be used to buy to an account rather to inventory instead of using service items and for such purpose ( i.e. no item code so no item group) can have their own posting profiles.

They can also be nested in a hierarchy to make it easy to rapidly find an item code within the category - very useful when creating e.g. a 100 line PR. If the number of items in any category is too many then think about using sub categories also. E.g, a broad category. like food for a canteen, might have sub categories of: fresh, dried, frozen, liquid, confectionery,

Note you can also have product categories, and retail categories.

See https://technet.microsoft.com/en-us/library/hh209418.aspx

This is a clear introduction https://swapax.wordpress.com/2013/01/28/ax-2012-product-categories/

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