Classification Scheme - Overview
Regulations in many countries require all taxable transactions to be classified during reporting. Commonly used classification schemes are the Harmonized (HS) code and United Nations Standard Products and Services Code (UNSPSC), but other schemes are also in use.
Classification schemes include taxonomy of goods and services. They enable sellers and buyers to describe goods and services in a common way.
The classification-scheme solution provides a framework for specifying more than one classification scheme and mapping transaction attributes to a classification scheme code. Classification scheme and scheme codes are supported for all outgoing transactions that result in billable lines.
Infor LN supported classification of goods by way of HS codes. However, with classification schemes, goods as well as services can be classified.
The table lists some of the major classification schemes and the co-relation with HS code:
| Classification Scheme | Ownership | Co-relation with HS | Remarks |
|---|---|---|---|
| SITC - Standard International Trade Classification | UNSD (United Nations Statistics Division) | Well correlated with HS, with structures and principles as Analogous with the HS. | Only available for goods. UNSD and WCO work in close co-ordination. Hence both are consistent to a large extent |
| UNSPSC (United Nations Standard Products and Services code) | UNDP (United Nations Development Program) | Indirectly through correlation with SITC | A global, open standard for classification of products and services across all industry sectors. Hierarchical in nature |
| eClass | maintained by the industry consortium ECLASS e.V. association | Not Available | For Goods and Services |
| EBOPS2010 (Extended Balance of Payments Services Classification 2010) | UNSD (United Nations Statistics Division) | Not Available | Only for Services |
All transactions (especially taxable, whether goods or service related), have to be associated with a classification scheme code.