Item across business units with varying usage

Summary:

We have a requirement from our customer wherein the same item can be used as a Finished Goods in one BU/organization but may be used as a Raw material in another BU/organization. Hence, Finished Goods Category cannot be used on the item when it's used as a Raw Material as that will lead to incorrect reporting

(a) How can we map this requirement? If we make the Functional Catalog as Organization Controlled, then what is the impact for like Inventory/Procurement

(b) Is it possible to have both categories of Finished Goods and Raw Material for the item? This can be used then for correct reporting based on the item usage