What is commodity code in SAP MM-IM - Inventory Management?

SAP Term: commodity code

• Component: MM-IM

• Component Name: Inventory Management

• Description: An official key as defined in the European Communities' harmonized system for describing and coding commodities. Commodity codes are used in the Intrastat declaration and are relevant to EU foreign trade statistics.

Smart SAP Assistant

• Key Concepts: 
  A commodity code is a unique identifier used to classify goods and services in SAP. It is used in the Inventory Management (MM-IM) component of SAP to identify and track items in the inventory. The code is typically assigned by a government agency or other regulatory body and is used to classify items for taxation, customs, and other regulatory purposes. 
  
  How to use it: 
  In SAP, the commodity code is used to identify and track items in the inventory. It is assigned to each item in the inventory and can be used to determine the applicable taxes, duties, and other regulations that apply to the item. The code can also be used to generate reports on inventory items and their associated taxes and duties. 
  
  Tips & Tricks: 
  When assigning a commodity code to an item in SAP, it is important to ensure that the code is accurate and up-to-date. This will help ensure that the applicable taxes, duties, and other regulations are correctly applied to the item. Additionally, it is important to keep track of any changes in the commodity codes as they may affect the applicable taxes and duties. 
  
  Related Information: 
  For more information on commodity codes in SAP, please refer to the official SAP documentation on Inventory Management (MM-IM). Additionally, you can find more information on commodity codes from your local government agency or other regulatory body.