I have created a new line type in purchasing as 'Service'. The Value Basis is 'Amount' and Purchasing Basis is 'Services'. Now when I am trying to create a PO for this line type, the Item field is non updateable. I cannot search for any items.
Can I not create and select items for this line type?
This seems to be the current functionality. Instead of choosing the item, you can fill the category and description.
If you are trying to treat your purchasable services as item, than try using line type with similar setting as Goods