The item category group determines how a material is processed in the sales order. It defines, for example, that pricing does not take place for a free of charge item, such as a business gift; or that inventory management is not carried out for a service. When processing sales and distribution documents, the system uses the item category group to determine the item category. The system determines the item category based on the item category group of the material and the current business transaction and proposes it in the respective document. hen creating the material types nonstock material and services, DIEN is proposed in both cases for the item category group, because the order processing for both material types is identical: for example, pricing is carried out for both, but no availability check.