What is SIC code in SAP PSM-FM - Funds Management?

SAP Term: SIC code

• Component: PSM-FM

• Component Name: Funds Management

• Description: Standard Industrial Classification code. A system developed by the United States Census Bureau in order to classify business entities according to their primary type of activity.

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• Key Concepts: 
  SIC code stands for Standard Industrial Classification code. It is a numerical code assigned to businesses by the United States government to classify them according to their primary business activity. In SAP Funds Management, SIC codes are used to identify the type of business that a vendor is engaged in. 
  
  How to use it: 
  In SAP Funds Management, SIC codes are used to identify vendors and classify them according to their primary business activity. This information is used to ensure that vendors are properly classified and that payments are made in accordance with the applicable regulations. To enter a SIC code for a vendor, go to the Vendor Master Data screen and select the “SIC Code” field. Enter the appropriate SIC code for the vendor and save the changes. 
  
  Tips & Tricks: 
  When entering SIC codes for vendors, it is important to ensure that the correct code is entered. If an incorrect code is entered, it could lead to incorrect payments or other issues. It is also important to keep the SIC codes up-to-date as businesses may change their primary business activity over time. 
  
  Related Information: 
  For more information on SIC codes and how they are used in SAP Funds Management, please refer to the SAP Help documentation.