In SAP S/4HANA Sales, the system determines the item category for a delivery document based on a specific set of criteria defined in the configuration. The primary factors are the Delivery type (e.g., LF for outbound delivery), which defines the business transaction, and the Item category group specified in the material master record. For structured materials like a Bill of Material (BOM), the Higher-level item category of the main item is also used to determine the item category of the sub-items. These fields, along with an item usage indicator (not listed as an option), form the key for the determination rule.

B. Shipping point: The shipping point is an organizational unit responsible for shipping activities and does not influence the determination of the item category.

C. MRP type: The MRP type is a material master setting relevant for Materials Management and Production Planning (PP), not for SD item category determination.

1. SAP S/4HANA Help Portal

Item Category Determination: "The system determines the item category in the delivery based on the delivery type

the item category group of the material and the item category of the higher-level item..." This documentation explicitly lists the three correct factors. (Path: SAP S/4HANA -> Sales -> Basic Functions and Master Data in SD Processing -> Item Categories -> Item Category Determination).

2. SAP S/4HANA Learning Journey

S4600 - Business Processes in SAP S/4HANA Sales: Unit 5: "Sales Document Customizing"

Lesson: "Item Category Determination". This module details the configuration for item category determination

specifying the combination of Document Type

Item Category Group

Item Usage

and Higher-Level Item Category as the key fields. The delivery item category determination follows this principle

using the Delivery Type as the document type.