Difference between Item categories M and W

Question

What is the difference between the Item Categories ' M ' and ' W ' ?. When & where these item categories are used?

Answer 1

HI,
The item categories M and W are intended for the entry of contract items without
specification of the material number.
Item category M
Recommended for similar materials of the same price. These can be materials with
different material numbers or materials without material master records.
You have set up a contract with your vendor covering various types of writing
paper (lined, squared, blank, two-/four-hole prepunched, etc.). The different types
of paper have the same weight, the same quality, and the same price.
When entering this contract item of category M, you enter the short description,
material group, target quantity, unit of measure, and price, but no material number.
The short description must then be entered in the contract release order (for
example, lined, two-hole prepunched).
You also have the option of releasing materials with a material master record
against this contract item in the release order, provided that the material group and
purchase order unit of measure agree.
Item category W
Recommended for materials belonging to the same material group but with
different prices. Item category W can only be used in value contracts.
You have set up a contract with your vendor for various types of cable. The
contract is to cover all types of cable included in the vendor's price list. However,
the exact type is only determined when a purchase order is created for a certain
cable. Instead of creating one contract item for each type of cable in the vendor's
assortment, you could enter item category W and the appropriate material group
(for example, cable). From the short text, it would then be clear that the contract
item covers all types of cable supplied by the vendor in question. Each release
order issued against this contract would then contain the exact specification of
cable type and quantity (for example, double-shielded coax, 1 meter), and price.
When entering the contract item, you enter only the short text and the material
group. You do not enter the target quantity or price. It is possible to enter
additional conditions. For example, you can enter a discount in the header
conditions if the vendor grants a discount on all POs referencing the contract. The
discount is calculated automatically when a contract release order is created.
The price, the target quantity, and the material number are not specified until you
create a release order. The relevant material master record must be assigned to
the same material group as the contract item referenced. If the contract release
order does not contain a material number, it must have a valid account assignment
(such as a cost center).