To create a purchase order item for a nonvaluated material, what do you need to do?

To create a purchase order item for a non-valuated material, selecting an account assignment category is essential because it determines how the purchase order item will be accounted for in the system. Non-valuated materials are not tracked for monetary values in the stock updates, meaning they do not impact inventory value directly. Instead, they often require a specific account assignment to reflect costs or reserves accurately in the financial accounting documents.

The account assignment category specifies whether the material is being charged to a cost center, an order, or another activity type. This decision is critical in a non-valuated scenario, as the costs associated with non-valuated materials must be allocated correctly even though the materials themselves do not contribute to inventory value. Therefore, selecting the appropriate account assignment ensures that all relevant financial records are accurately maintained and respective budgets and expenses are captured.