A business partner can belong to any one of these categories. An account can be further sub-divided as follows-
Account: An account is a company, group, or individual, with which your organization have a business relationship.
Accounts are further divided into:
Corporate Account (organizations or companies)
Individual Account (individuals)
Groups (Groups like households)
Contact
person with whom you have a business relationship
mostly assigned to a corporate account
Employee
member of your organization
involved in interaction between your organization and vendor, prospect, customer, and other parties
It is not possible to modify these categories or to create new categories. When a business partner is created in SAP CRM, category is assigned to it. The business partner category can only assign once while the creation of the business partner and cannot be modified at later stages of the business partner life cycle.
This business partner category is also used in the header of the account display, create and modify page
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