Category sets may be used as a means to develop custom lists of items on which to report and sort. You can also create other category sets such as John’s Priority or Jane’s Priority, with categories like high, medium, and low.
The category set Inventory is seeded when you install Oracle Inventory.
The category set Purchasing is seeded when you install Oracle Purchasing.
If you plan to use Order Management’s group pricing functionality with item categories, you must add the categories to the Order Entry category set.
Attention:
1. You must use this window to define valid categories for each purchasing category set before you can use Oracle Purchasing.
2. For the Controlled At level, if the item defining attribute of the functional area (e.g. Inventory’s is Inventory Item) is controlled at the Organization level, then the new default Category Set should also be controlled at the Organization level.

Enter a unique category set Name and Description.  In the Flex Structure section, enter which flexfield structure is to be used.  The categories assigned to the category set must have the same flexfield structure as the set itself.  Select a control level and a default category.
You will then need to select Enforce List of Valid Categories if you want validation of the categories at the time of input.  You will then enter in or select the valid categories for the category set.

Enter a flexfield Structure Name, a unique Category (value) for each structure segment, and a unique description for the new category.  If you want to make a category inactive, enter a date you want the category to be inactive on.  Save your work.
If you choose a multi–segment flexfield structure you can assign a specific meaning to each segment. For example in our case the category “Electronics.Mobile.Samsung” means an item assinged to this category is a samusng brand mobile device of elcetroincs product group.

You can define multiple segment structures for the Item Categories Flexfield. Each segment structure may have its own display prompts and fields.
When you install or upgrade Oracle Inventory or Oracle Purchasing, Oracle provides two category flexfield structures by default: Item Categories and PO Item Category.
Each segment structure can display prompts and fields that apply specifically to a particular naming convention. For example, you might want one of your category sets to use two segments for the names of categories. Another item grouping scheme might use just one segment for the names of categories. You choose a flexfield structure for every category set and category that you define.

1. Lets create an item category as Procut Information with three segment:  Product Line – Product Name – Brand Name
Product Line – Electronics, Machine, FMG
Product Name – Mobile, TV, Bus Engine, Soap, Biscuit
Brand Name – LG, Samsung, Cummins, Britania
 
2. Define all the value sets as shown below.

3. Define the item category flex field.

4. Filling up the value set of the stucture product information

 

Categories are logical groupings of items that have similar characteristics. A category set is a distinct category grouping scheme and consists of categories.
Each category grouping scheme can use different terminology for its categories, as well as different naming structures based on number of segments. You can define multiple structures for your Item Categories flexfield. You can configure each flexfield structure by using as many segments and any level of value set validation that you need.

When inventory is installed, a default category must be assigned to each of the following functional areas: Inventory, Purchasing, Order Entry, Costing, Engineering, and Planning. When an item is enabled for a functional area, it is assigned the default category set.  You cannot delete the items default category set assignment.  Default categories are required so that each functional area has at least one category set that contains all items in that functional area.   For the functional areas, optionally, you can have a unique category set; for example, you may set up a unique category set for Purchasing.  It is also possible to have one category set defined to be the default category set for all functional areas.  The complete set up of item categories is done in below 5 steps in sequence.