Procurement and Sourcing - Procurement Categories ERROR Your organization does not have a procurement category hierarchy. Set up a procurement category hierarchy in the Product information management

Tip of the Day: If you encounter an error message that says "Your organization does not have a procurement category hierarchy", don't panic. This simply means that you need to set up a procurement category hierarchy in the Product information management module. A procurement category hierarchy is a way of organizing and managing your procurement processes and policies. It helps you to control spending, track performance, and optimize sourcing.

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Error: When trying to open Procurement and Sourcing > Procurement Categories you get this error: Your organization does not have a procurement category hierarchy. Set up a procurement category hierarchy in the Product information management module.

The menu item with name proccategoryhierarchymanagement could not be opened.

Solution: The error is caused by a missing setup on the Category Hierarchies.  Go to Production information management > Setup > Categories and attributes > Category hierarchies > click on the Name you created for the Procurement Categories (the name may be different because you can name the Category Hierarchy whatever you want) > click on Associate Hierarchy Type

Click New and add Category hierarchy type = Procurement category hierarchy and set the Category hierarchy to the Name of your procurement Category Hierarchy.