Hi Naresh,
unfortunately this item category Setting is only available for some item category bus types.
There is as well the flag in Service in item categories 'cost relevance' But this has a Crux as well -> it works only for actual costs. Planned costs are still coming.
Hans if you simply want to have no internal orders and no Controlling in ERP for your CRM Service orders then you have to set up in SAP ERP:
Integration with other SAP components -> Customer Relationship Management -> Settings for Service Processing ->Controlling Integration -> Establish Controlling Type, Controlling Level....
There you Need to set up no Controlling as Controlling type and reference usage ignore. But this will only work if you don't use the CRM Integration to create purchase requisitions (BANF) or purchase orders. This Integration Forces you to have a Controlling Setting. We have had this Problem in a Project and a message to SAP OSS gave this answer. A working as designed...