What is classification system in SAP LOD-LH-TAX - SAP Localization Hub, Tax Service?

SAP Term: classification system

• Component: LOD-LH-TAX

• Component Name: SAP Localization Hub, Tax Service

• Description: A taxonomy of products that is used for various statistical or economic purposes, such as taxation and customs. There are numerous classification systems that manufacturers and other parties use to classify their products in a given country or region. Examples include the United Nations Standard Products and Services Code UNSPSC and Central Product Classification CPC.

Smart SAP Assistant

• Key Concepts: 
  A classification system is a tool used in SAP Localization Hub, Tax Service to classify goods and services for taxation purposes. It is based on the Harmonized System (HS) of the World Customs Organization (WCO). The classification system is used to assign a unique code to each item, which is then used to determine the applicable taxes. 
  
  How to use it: 
  The classification system can be used to assign codes to goods and services for taxation purposes. To do this, the user must first select the appropriate HS code from the list of available codes. Once the code has been selected, the user can then enter the relevant information about the item, such as its description, unit of measure, and any applicable taxes. 
  
  Tips & Tricks: 
  When using the classification system, it is important to ensure that all of the information entered is accurate and up-to-date. This will help ensure that the correct taxes are applied to each item. Additionally, it is important to keep track of any changes made to the classification system, as these changes may affect the applicable taxes. 
  
  Related Information: 
  For more information about using the classification system in SAP Localization Hub, Tax Service, please refer to the official documentation provided by SAP. Additionally, there are a number of online resources available that provide detailed information about how to use this tool.