Line Types of Purchasing Documents

Different line types can be selected while creating purchasing documents like Requisition, Purchase Order etc. These line types indicates that it is for Goods or Services etc and defines line's valuation type as one of Quantity, Amount, Fixed Price, Rate Based. To define line types: Purchasing Super User> Setup> Purchasing> Line Types. More than one line type can be created for a valuation type and for iProcurement default of these types can be selected via profiles (by searching profiles with: POR%Line%Type). Here are sample cases from Purchasing user guide:

"Requestors and buyers generally order both goods and services by quantity. You order the number of items you need in a specific unit of measure and at a given price. For instance, a buyer could order 10 computer terminals at a price of $1500 each. Later, the receiving agent records the receipt of one crate of 5 terminals. The accounts payable department receives a bill for 5 terminals, and matches the invoice against the original purchase order. Sometimes, you also need to order services in the same way. For example, you purchase 40 hours of product training at a rate of $40 per hour. You simply record the hours of training ordered and the price per hour. Once you receive the training, you record the hours received.
However, you sometimes order services by amount rather than by quantity. For example, a project manager orders $10,000 of consulting services to install a local area network. In this case, the buyer only needs to record the total amount of the service.
When half of the work is complete, the project manager records a receipt of $5000. The consulting firm may send an invoice for the complete amount of the service, or it may send partial invoices. In either case, the accounts payable department must match the invoice to the original purchase order or receipt by amount."