Associating scheme code as per scheme base

Classification scheme code for Items, scheme base – Goods and Services

You can link an item to a scheme code using the Classifications for Items (tccls1100m000) session. Possible scenarios:

• When the Country is specified and the Scheme Base is set to Goods, this session can be used to link scheme codes for a country. The transaction must be related to the sale or purchase of inventory items.
• When the Country is not specified and the Scheme Base is set to Goods, this session can be used to link scheme codes at a global level (for all countries). The transaction must be related to sale or purchase of inventory items.
• When the Country is specified and the Scheme Base is set to Services, this session can be used to link scheme codes for a country. The transaction is related to service of inventory items or the item is a service item.
• When the Country is not specified and the Scheme Base is set to Services, this session can be used to link scheme codes at a global level (for all countries). The transaction is for service of inventory items or the item is a service item.

Classification scheme code by Item

You can use the Classifications for Classifications for Items (tccls1100m000) session to view all the classification schemes and the related codes for an item.

Classification scheme code by Landed Cost Type

For Landed cost, the scheme base is mostly of the type Services. However, there can also be landed costs that may be Goods in nature. For example, packaging cost of the item which is considered as goods. Hence, you can map landed cost to goods as well as service. You can select the appropriate ‘VAT based on’ value at the transactional level (landed cost line) as this is mapped to scheme base.

You can use the Classifications for Landed Costs (tccls1110m000)session to link a landed cost type to a code of a scheme. Possible scenarios:

• When the Country is specified and the Scheme Base is set to Goods, this session can be used to link scheme codes for a country based on landed cost type where transaction is for a landed cost.
• When the Country is not specified and the Scheme Base is set to Goods, this session can be used to link scheme codes at a global level (for all countries) based on landed cost type where transaction is for a landed cost.
• When the Country is specified and the Scheme Base is set to Services, this session can be used to link scheme codes for a country based on landed cost type where transaction is for a landed cost.
• When the Country is not specified and the Scheme Base is set to Services, this session can be used to link scheme codes at a global level (for all countries) based on landed cost type where transaction is for a landed cost.

Scheme code for Subcontracting purchase order

A subcontracting purchase order is created to subcontract either a specific operation or the complete item. Infor LN considers ‘VAT Based On’ (Goods or Services) value based on the nature of the item and not on the subcontracting activity. Hence, subcontracting purchase orders are treated as ‘Goods’. However, subcontracting is about purchasing service on the item and not the item itself, therefore, some countries consider this as Service. So, the scheme code must represent the service being provided.

To map a subcontracting purchase order to scheme base service, in Items - Purchase (tdipu0101m000), VAT Based on under Item Subcontracting must be set toService.

Classification Scheme code for Service

When an item is serviced in a depot or an engineer repairs the item at a location, an invoice is issued to the customer (if applicable). This invoice is for the service performed on the item and the scheme code specified on the invoice must be of the type Service. The same is the case with service call or service contracts.

The exception is for part delivery and part receipt where an item is supplied (sale) to a customer or received (purchase). For customer claims, if the item is being reimbursed, invoice is not created. If the costs are being reimbursed, a credit note is generated. For Service, the default value of VAT Based On is Services, However, you can change this value. For part delivery and part receipt the value is always set to Goods and you cannot modify the value.

Classification Scheme code for Project

The classification schemes in Project is based on the project invoicing. The project invoicing can be of these types:

• Contract Deliverables: Contract deliverables are item based and hence can be considered as similar to sales. A contract deliverable always contains item and so the scheme code is retrieved from the Items (tcibd0501m000) session.
• Installment / Progress / Unit Rate: These invoices are not item based. Invoicing is done when an activity or milestone or element is completed. Generally, a scheme code is applied for an entire contract. However, there can be exceptions where few elements or activities may have scheme code different than the contract line. Business sector, Category, Activity and Element are attributes identified using which the classification code can be mapped for these requirements.
• Cost Plus: For cost-plus invoicing, all types of costs can be invoiced to the customer. This may include labor such as project management and technical consulting, or sundry costs such as travel and hotel stay, or sometimes overheads are also charged to the customer apart from items, hired equipment and subcontracting. These invoices are expected to contain respective scheme code details. Equipment and subcontracting along with item are part of Item master, so scheme code related to these must be defined in the Classifications for Items (tccls1100m000) session. Scheme code for Labor, Sundry and Overhead costs must be defined in the Classifications for Project (tccls1130m000) session.

Classification Scheme code for Financials

Buyer of goods or services receives invoice for the goods purchased or services received. This invoice contains scheme code mentioned by supplier of goods or service provider. The scheme code is retrieved in Financials based on these categories:

• Invoice related to a logistic order
• Invoice not related to a logistic order

Classification Scheme code for Freight

For freight expenses, the service provider invoices the supplier of goods and generates a purchase invoice. Similarly, the supplier of goods can invoice the customer for the freight expenses. Since the invoice is related to freight service, the scheme code on the invoice must be of type Service.

Freight scheme code is based on transport categories such as, rail, road, water air and so on. These categories can be linked to the Freight attributes in the Classifications for Freight (tccls1140m000) session. Hence, these attributes are used for classification code mapping and scheme base is considered as Service.

Classification Scheme code for Intercompany Trade

Mapping of scheme base for intercompany trade transactions: