Differences between Article Hierarchy and Merchandise Category

Hai Gurus,
Can somebody distinguish the differences between the Article Hierarchy and Merchandise Categotry? Which one is better to use? Both seems to have a similiar functionality but why SAP had proposed Article hierarchy and Merchandise category seperately?

Hi Voyeurhuman,
if you have not typed correctly, then you might be interested to know the difference between Articel hierarchy & Merchandise hierarchy.
pls go thru following:
Article Hierarchy
.grouping of articles with sales oriented approach
.customer oriented structure
.Consumer decision Tree
.maximum eight levels
.planning hierarchy used for sales plannng in MAP
.multiple no. of Article hierarchies at a time with schedule article hierarchy i.e. with time dependent functionality
.can be define for distrubution chain dependent
.can be transported to BI
.data can be imported as wellas exported using interfaces
.sub structure of one can be copied from one to another
.Major characteristics-->responsibility, reference assignment, price point group assignmnet, merchandise distributio(fashion/basic), role,strategy/
.multiple assignment of articles is not possible within same category
.it can be assigned to department store and shops with pre-requisite of multiple assignment checked
Merchandise Hierarchy
.its a purchase oriented approach
.it classify and structure all aspects of the merchandise
.purchaser decision tree
.An unlimited number of hierarchy levels is possible
.terms are used in merchandise category hierarchies
     -Merchandise category hierarchy levels
     -Merchandise category hierarchies
     -Characteristics profiles
.All the elements in the merchandise category hierarchy are defined as classes(class 026)
Both Article & Merchandise Hierarchies are very much different. Both are meant for differnt purposes.
thanks,
Naresh Kumar
Edited by: Naresh_ISR on Feb 17, 2010 10:47 AM
Edited by: Naresh_ISR on Feb 17, 2010 10:48 AM

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Item Category determines the processing of any Item/material that we enter in a sales order and in this way it also effects the procesing of any sales doc in which it is used.
Item Category Group is one of the component which along with the Sales Doc Type, The Item Usage and Higher Level Item Category decide about the Item Category in a sales doc.
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