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What does the item category control? How does automatic
account assignment happen?

Answer Posted / kishore

Item category controls whether the item is relevant for
pricing, delivery, billing,etc.
Automatic account assignment are basically configured in CO
module.
in case of thirdparty sales account assignment category is
assigned at schedule line category level,in case of make to
order scenario, it is assigned to requirement class..like
that it is assigned to different levels.

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