What is item category in SAP FI-GL - General Ledger Accounting?

SAP Term: item category

• Component: FI-GL

• Component Name: General Ledger Accounting

• Description: The item category characterizes the items of an accounting document. The item category is derived from the account type and is required for document splitting. Examples: Customer Vendor Asset Cash discount clearing Exchange rate difference

Smart SAP Assistant

• Key Concepts: 
  Item category is a feature of the FI-GL General Ledger Accounting component of SAP. It is used to classify and group items in the general ledger. It is used to determine the account type, account assignment, and posting rules for each item. 
  
  How to use it: 
  Item categories are used to define the characteristics of an item in the general ledger. This includes the account type, account assignment, and posting rules. The item category can be set up in the system by assigning a specific item category to each item in the general ledger. 
  
  Tips & Tricks: 
  It is important to ensure that the correct item category is assigned to each item in the general ledger. This will ensure that the correct account type, account assignment, and posting rules are applied to each item. 
  
  Related Information: 
  For more information on item categories in SAP FI-GL General Ledger Accounting, please refer to SAP Help documentation.