Classification scheme - Defining Master Data

Classification Schemes

Classification schemes are used in domestic and international trade for reporting purposes. You can define Multiple classification schemes, and the usage of these schemes changes based on the country or purpose. An organization may operate from multiple countries with same schemes, or from each country having a different scheme. You can define classification schemes in Classification Schemes (tccls0110m000) session. The master data defined in this session is applicable across all the companies.

HS code is the most used classification scheme across the world. Hence, HS code has a specific option ‘Based on HS code’. If the classification scheme defined in the Classification Schemes (tccls0110m000) session is based on the HS code, you must select the Based on HS Code check box to avoid duplication of HS code data, which is defined in the Harmonized System Codes (tcmcs0128m000) session. In such cases, the code always refer to the current HS code.

Codes by Classification Scheme

You can use the Codes by Classification Schemes (tccls0110m000)session to list the classification scheme codes for goods and services. This session is enabled for schemes for which ‘Based on HS code’ is not applicable.

Classification scheme parameters

The classification scheme parameters can be defined at a global level and at a country level. You can specify the parameters at global level using the Classification Parameters (tccls0100m000) session and at country level using Classification Parameters by Country (tccls0101m000) session. However, LN always considers the parameters defined at the country level (the tax country of the transaction), if available. Else, global level parameters are considered.

You must select the Use Classification Scheme check box in the Classification Parameters (tccls0100m000) session to enable the classification scheme across all the companies.

You can specify separate classification schemes for goods and services. You can also specify the search sequence for various attributes such as Business Partner, Business Sector, Task and so on depending on transaction origins like Project, Service and so on, to identify the classification scheme.

You can link a classification scheme which is ‘Based on HS code’. Other classification schemes can be used for organization specific reporting purposes.

Classification scheme parameters by country

You can define the parameters for the classification schemes specific to a country using the Classification Parameters by Country (tccls0101m000) session. You can also define a search sequence different from global parameters.