¶ Purpose
The purpose of Item Category in an ERP system is to systematically classify and organise items by creating categories and subcategories. It provides a structured framework to group items logically, making it easier to manage inventory, apply pricing and tax rules, control item usage, and generate category-wise reports. Item Category ensures data consistency, improves operational efficiency, and supports accurate analysis and decision-making across procurement, production, sales, and accounting processes.
¶ Prerequisites
- Access rights must be assigned to the user responsible for adding, editing and deleting the category details.
¶ Add Item Category Details
The Item Category Masters – Mode: New screen allows the user to add categories and subcategories details.
Navigation: Main Menu → Masters → Masters – Items → Item Category → Add
- The user can search for Item Categories based on the Code and Name.
- Click Add, the following screen appears.
- The Item Category Masters – Mode: New screen allows the user to enter category details such as the Code and Name.
- The user can select the Parent category to create a child or subcategory if required.
- The user can select the Create Item Category (Sales) checkbox to display the category on the Item Category (Sales) screen and mark the item as saleable for use in sales transactions.
- Click Save, to save the added details.
- Click Close, the added details will appear on the left panel of the screen.
¶ Edit or Delete Item Category Details
The Item Category Master – Mode: Edit screen allows the user to edit or delete the added or existing category details if required.
Navigation: Main Menu → Masters → Masters – Items → Item Category → Select the Category → Edit
- The user can search for Item Categories based on the Code and Name.
- The user must select the appropriate category from the left panel of the screen.
- Click Edit, and the following screen will appear.
- The Item Category Master – Mode: Edit screen allows the user to edit details such as the Code, Name, Parent, Active and Create Item Category (Sales).
- The user can deselect the Active checkbox to deactivate the category if it is not in use.
- Click Save to save the edited details.
- Click Delete, and the following message appears.
- Click Yes.
- Click Close, and the deleted details will disappear from the left panel of the screen.
Note: The user can delete the added or existing details of the category if the same is not used in any master or transactions.
¶ View Details in Tree or Grid
The Grid View and Tree View options allow the user to view categories or subcategory details either in a tabular format or in a hierarchical structure for easier navigation and understanding.
- Click Grid View to view details in tabular format (rows and columns), as shown below.
- Click Tree View to display data hierarchically (parent-child structure), as shown below.
- The user can expand or collapse nested items to view relationships, categories or subcategories.
¶ Search Item Category Details
The Search option allows the user to search for category details based on the Code, Name, Parent and Create Item Category (Sales).
- Click Search, and the screen will appear as shown below.
- The user must select the appropriate Filter On from the dropdown list.
- The user must select the appropriate Filter Text from the dropdown list and enter the corresponding filter value.
- Once the user enters the value, the corresponding list will appear on the left panel of the screen.
¶ Print Category Details
The Print option allows the user to print the added or existing categories and subcategory details.
- Click Print, the following screen will appear.
- Click Filter, to search for details.
- Click Sort, to arrange details in either ascending or descending order.
- Click Export to Excel, to view details in Excel.
- Click Settings, to adjust Columns, Fonts, Row Height, Fit To Page, Page Setup and Printer Setup.
- The Set Col Details option allows the user to adjust column width as required.
- The Font option allows the user to edit Font Family, Font Style, Size, Effects and Scripts as required.
- The Auto Row Height option allows the user to adjust row height if required.
- The Fit to Page option allows the user to scale the content to fit the page if required.
- The Printer Setup option allows the user to configure the Printer, Print Range and Copies details if required.
- The Page Setup option allows the user to set the Paper Size, Orientation (Portrait or Landscape) and Margins in Inches (Left, Right, Top and Bottom) details as required.
- Click Print, to print details.
- Click Print Preview, to view details before printing.
- Click Close, to navigate to the Item Category screen.
¶ Where Used
The Where Used option provides a list of transactions or tables where a specific category is used in the application.
- The user must select the appropriate category from the left panel of the screen.
- Click Where Used, and the following screen will appear.
- The Where Used screen displays details such as SL No., Where Used and Details.
¶ Bulk Update - Edit Multiple Details
The Bulk Update option allows the user to edit multiple categories and subcategory details at once.
- Click Bulk Update, and the following screen will appear.
- The user can edit details such as the Code, Name, Parent, Active and Create Item Category (Sales).
- Click Save.
¶ Functional Use Cases
| Sl. No. | Use Case | Business Scenario | Functional Outcome in ERP |
|---|---|---|---|
| 1 | Create Item Category | The organisation needs to classify items under broad groups. | ERP allows creation of item categories for structured classification. |
| 2 | Create Item Subcategory | Items require further classification within a main category. | ERP enables hierarchical categorisation using subcategories. |
| 3 | Assign Items to Category | Items must be linked to appropriate categories. | ERP groups items under selected categories for easy management. |
| 4 | Update Item Category | Business classification requirements change over time. | ERP updates category details without affecting existing transactions. |
| 5 | Control Category-wise Usage | Certain categories are restricted for specific processes. | ERP controls item usage based on category configuration. |
| 6 | Category-based Reporting | Management needs item analysis by category. | ERP generates category-wise inventory and transaction reports. |
| 7 | Pricing & Tax Rule Mapping | Pricing or tax rules vary by item category. | ERP applies correct rules based on item category. |
| 8 | Audit & Data Consistency | Item classification must be consistent and traceable. | ERP ensures standardized categorization and audit compliance. |
¶ Use Case Scenario
- Click here for a detailed use case scenario.
¶ Transaction Checklist
| Steps | Checklist Item | Details / Purpose |
|---|---|---|
| 1 | Review Business Classification | Confirm the business need for creating a new category or subcategory. |
| 2 | Check Existing Categories | Verify that a similar category or subcategory does not already exist. |
| 3 | Define Category Hierarchy | Decide the parent category and required subcategory structure. |
| 4 | Confirm Category Naming | Ensure category name and code follow company naming standards. |
| 5 | Identify Usage Scope | Determine where the category will be used (Purchase, Sales, Production, Inventory). |
| 6 | Verify Pricing & Tax Impact | Check if pricing, tax, or valuation rules need to be linked to the category. |
| 7 | Validate Item Type Mapping | Confirm item types allowed under the category (RM, FG, Consumables, etc.). |
| 8 | Check Control Restrictions | Identify any transaction or usage restrictions required for the category. |
| 9 | Authorization & Approval | Obtain necessary approval from the master data or finance team. |
| 10 | Audit & Compliance Review | Ensure category setup aligns with audit and reporting requirements. |