Commodity Code

The commodity codes for an item are specified on the Control screen of the Part Master Maintenance conversation.  Unlike accounting codes, commodity codes are completely optional.  Three commodity codes can be defined for an item.

·     Commodity Code.  In the Requirements Planning module, different reporting options can be selected for each commodity code.  The Projected Inventory Cost Report is sequenced and subtotaled by commodity code.  ABC classification information can be reported by commodity code as well as by accounting code.  ABC classification is maintained within Inventory Control.  Commodity codes are defined on Reference File category 434.

·     Customs Commodity Code.  This commodity code is used to classify the item when reporting import/export activity to the government.  Standard commodity codes are established by the European Community.  The code you enter on the Part Master record will be included in the Supplementary Sales Declaration report and file, which are created within Accounts Receivable.  The codes are not validated within Part Master Maintenance. 

·     Tax Commodity Code.  The system uses this commodity code in Goods and Services Tax (GST) and Provincial Sales Tax (PST) environments to create codes for certain commodities exempt from taxes.  You create the tax commodity codes in Reference File category 425 (Tax Commodity Codes).  Once you set up a tax commodity code in category 425, you then set up the tax commodity code in Reference File category 348 (Canadian Taxability) to determine the taxability of a particular commodity in one province or generically across all provinces.  You determine this by entering a combination of PST code and tax commodity code as the category key for category 348.  In category 348, when you enter a tax commodity code by itself, it signifies a generic tax commodity code for a commodity exempt from taxes in all provinces.  When you enter a tax commodity code in combination with a PST code, it signifies a commodity exempt from taxes in a specific province (determined by the PST code).