This content has been marked as final. Show 3 replies
That is because if you don't have an item number on the po, Oracle won't know what item to put away when you want to receive and put away the po. An expense item is not stored in inventory.
Hope this answers your question
Here is my answer for your question. See when you create a po with item category its destination is automatically will be expense because of the following reason.
if we place an item on the po then when we receive the item . As soon as we receive it will be stored in the inventory as on hand quantity. so here we have a tracking for the item from the inventory. But as you asked if we give just an category then we can not store it as inventory item and we dont not have any tracking for that so it is considered as an expense destination and so the type is taken as expense.