Oracle Purchasing provides initial line types of Goods and Services. If Oracle Work in Process is installed, Oracle Purchasing also provides the line type Outside Processing. If Oracle Services Procurement is installed, Oracle Purchasing also provides Rate Based Temp Labor and Fixed Price Temp Labor line types. You can modify these line types or create new line types in the Line Types window.
The Prerequisites for defining line types are to a) Define categories.and b) Define units of measure.
To define a new line type, you go to line type window and provide a name and description for lines types with a value basis of quantity, fixed price, rate, or amount. You can then optionally specify a default category, whether receipt is required, and unit of measure. The unit price defaults to 1 for amount–based line types but is otherwise optional. You cannot specify a line as outside processing unless the value basis is quantity. You must provide a default unit of measure for rate–based and amount–based line types. You use the unit of measure for amount–based lines as reference information only. Purchasing does not perform any unit conversion for amount based lines. You can create a unit of measure such as AMOUNT for amount based line types to help you determine if ordered by amount.