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Difference between Default commodity, Commodity code hierarchy and Commodity code

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Posted on by Charlotte Yin

Hi all,

I have already set up the default commodity, commodity code hierarchy, and commodity code in the system. However, I noticed that the commodity code used in the VAT invoice integration is derived from the default commodity. I would like to understand the underlying logic behind the selection of commodity code. Specifically, I am interested in knowing what scenario corresponds to which type of commodity code. Your insights on this matter would be greatly appreciated. Thank you in advance!

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Charlotte Yin 33 on at

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Difference between Default commodity, Commodity code hierarchy and Commodity code

Hi Kevin,

Thank you for informing me about this. My question is, even though I set up the item's commodity code in the Commodity Code Hierarchy, the exported result still shows the value which I set in the default commodity. Have I missed some configuration?
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Kevin Xia Microsoft Employee on at

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Difference between Default commodity, Commodity code hierarchy and Commodity code

Hi,

The default commodity is a global default value set in F&O. When creating a new item, if no specific commodity code is assigned to it, the system automatically uses the commodity code of the default commodity.

The commodity code hierarchy is a structure used to organize and manage commodity codes. It can be defined based on different standards, industries, or countries/regions. By categorizing and managing commodity codes in a hierarchical manner, better classification and management of items can be achieved.

The commodity code is a coding system used to identify and classify commodities. It typically consists of numbers and letters and can be customized based on trade rules and requirements of different countries/regions. Commodity codes are used for applications such as ensuring accurate tariffs, import/export controls, and statistical reporting.

The commodity codes used in VAT invoice integration are derived from the default commodity. This means that when creating an invoice, the system automatically assigns the commodity code of the default commodity to the associated items. This ensures the correct application of applicable commodity codes in invoices to meet tax requirements.

Best regards,

Kevin