Item Categories Tab of Purchasing and Inventory Company Settings Form

Use this tab to specify the purchasing and inventory item categories for each of your companies.

You also enter Balance Sheet and Inventory accounts for the item categories on this tab. Item categories help buyers charge the correct account for an item if they are not sure of which account number to use.

If you use the Multicompany feature, use the Item Categories tab to enter item categories for the active company.

Click Insert on the Item Categories grid to enter item categories.

Field	Description
Category	From the drop-down list, select the item category to make available to Purchasing users in this company. The item categories in the drop-down list are the item categories that are entered on the Item Categories tab in Configuration > Purchasing and Inventory > System Settings.
Description	This field displays the description that is entered for an item category on the Item Categories tab in Configuration > Purchasing and Inventory > System Settings.
Type	This field displays the expense type that is entered for an item category on the Item Categories tab in Configuration > Purchasing and Inventory > System Settings. Types are: Materials & Supplies — Use this type for any purchased items that do not include labor. Items with this type will not generate an associate equipment item in the Equipment Info Center. Capital Items — You can enter items with this type of category through the purchase order process or directly in the Equipment Info Center. When you enter an item with the capital items category type on a purchase order, you must enter a project for it on the Default Distribution tab on the Purchase Order form. A project is required even if you do not have the Cost Distribution in P.O. check box selected in the Required Data section of the General tab in Purchasing & Inventory Company Settings. When you enter only one project for a capital item on a purchase order and final print the purchase order, an equipment item is created automatically for it in the Equipment Info Center. Services — Use this type for purchased labor for a stated piece of project scope. Items with this type will not generate an associate equipment item in the Equipment Info Center. Equipment — You can enter items with this type of category through the purchase order process or directly in the Equipment Info Center. When you enter an item with the equipment category type on a purchase order, you must enter a project for it on the Default Distribution tab on the Purchase Order form. A project is required even if you do not have the Cost Distribution in P.O. check box selected in the Required Data section of the General tab in Purchasing & Inventory Company Settings. When you enter only one project for an equipment item on a purchase order and final print the purchase order, an equipment item is created automatically for it in the Equipment Info Center.
Reimb Account	Enter the number of the General Ledger account to which to post the debit entry for voucher transactions related to the item category's reimbursable expenses.
Direct Account	Select the General Ledger account to which to post the debit entry for voucher transactions related to the item category's direct expenses.
Indirect Account	Click and select the General Ledger account to which to post the debit entry for voucher transactions related to the item category's indirect expenses. When the Maintain separate balance sheets by Organization option is selected in Organizations Configuration: The Balance Sheet Account column is not shown in the Item Categories grid. You select the balance sheet account here. It is necessary to specify a project in the Transaction Center. It is not necessary to specify a usual balance sheet account that is different from the item category's indirect account.
Balance Sheet Account	This column displays if the Maintain separate balance sheets by Organization option is not selected in Organizations Configuration. If this option is not selected, you must specify a usual balance sheet account for each item category. The item's cost is posted to this account if no project is specified for the item's cost distribution.
Inventory Account	This column displays only if the Enable Inventory option is selected on the Inventory tab. Click and select the account to charge. You can select either a balance sheet account or an indirect expense account. An inventory item's cost is charged first to the Inventory Common Project that is specified on the Inventory Tab.
Taxable	Select the check box to mark this item category as taxable. Leave this check box cleared to mark the item category as non-taxable.
Require Qty	Select this option to make it necessary for users to specify the item's quantity when they use this item category in a new purchase order, purchase requisition, or request for price quote.
Require U/M	Select this option to require users in this company to specify the item's unit of measure when they use this item category in a new purchase order, purchase requisition, or request for price quote.
Insert	Click this option to add a row to the grid.
Copy	Click the row to copy, then click this option to add a copy of the row to the grid.
Delete	Click the row to delete, then click this option.