To set up associations for purchasing categories used for direct items:You can specify whether direct items are material, labor, or equipment charges on a work order, based on the user-specified Purchasing Category on the requisition or purchasing line. Purchasing Categories are associated with a maintenance cost element and its respective valuation account. If an association is not set up, direct items are charged as material on the work order.
Direct items may be Non-Stock or Description-based. Non-Stock Direct Items are defined within Oracle Inventory (See: Non-Stock Direct Item Setup), and the Purchasing Category for this type of direct item defaults from the Purchasing category set's item assignments.
For projects, you can assign direct items to a Direct Item Expenditure Type, other than the one assigned at the organization level. This is performed based on the Direct Item Expenditure Type associated with the Purchasing Categories used on the requisition or purchasing line.
To set up associations for purchasing categories used for direct items:Navigate to the Find Category Associations page.
Choose New.
Select a Purchasing Category.
See: Defining Category Sets, Oracle Inventory User's Guide.
Select a Maintenance Cost Element.
Select a Valuation Account.
If the Maintenance Cost Element is Material, you can choose the Material Valuation Account. If the Maintenance Cost Element is Labor or Equipment, you can select the Resource or Outside Processing Valuation Accounts.
Select a Start Date.
Optionally select an End Date.
A Purchasing Category may have one existing association at a time. If you want to assign a different association for a category, select an End Date.
Select a Direct Item Expenditure Type if your organization uses Oracle Projects.
This is a required step.
Save your work.
Other Sources
Defining Categories, Oracle Inventory User's Guide
Defining Category Sets, Oracle Inventory User's Guide
