Create a Procurement Category Hierarchy

As a procurement application administrator you can set up a procurement category hierarchy. A procurement category hierarchy is a grouping of purchasing categories which maps how your organization categorizes spend.

By setting up a procurement category hierarchy, you gain the ability to use the nonitem categories from the hierarchy to set up:

• Transaction approval rules

• Account generation rules

• Business intelligence reports on the Requisitions, Purchasing and Sourcing subject areas

Note: A procurement category hierarchy isn't the same entity as a catalog category hierarchy. The structure of the two can be the same, but don't have to be the same. Each hierarchy can be configured differently to meet the needs of your organization. Also, a procurement category hierarchy isn't the same entity as a supplier products and services hierarchy.

In the Setup and Maintenance work area, use the Manage Procurement Category Hierarchy task in the Procurement Foundation functional area to create a procurement category hierarchy.

1. On the Manage Procurement Category Hierarchy page, you can perform these actions to build a hierarchy:

   • Create browsing categories

   • Insert item categories

   • Edit, move or delete categories

2. To create a browsing category:

   1. Highlight an existing category in the hierarchy.

   2. Click the Create button or select Create from the Actions menu.

   3. On the Create Browsing Category dialog, enter a name and description and click Save.

3. To insert an item category:

   1. Highlight an existing category in the hierarchy.

   2. Click the Insert Item Category button or select Insert Item Category from the Actions menu.

   3. On the Select and Add: Item Categories dialog, search for and select the item category from the existing list.

Note: To create additional item categories for insertion into the procurement category hierarchy, use the Manage Functional Area Catalogs task. You can find the task in the Setup and Maintenance work area, in the Purchasing Categories functional area. You can also find the task in the Catalogs functional area.