The TCA Classifications model provides a flexible tool that you can use to categorize entities, which can include parties, projects, tasks, orders, and so on. Classifications can use different paradigms and does not restrict you to a single way to classify an entity. This enables you to classify an entity, such as a party, in a way that the rest of the world sees it, in addition to the way it is referenced within your organization. This is extremely helpful when you map the internal representation of a company's environment to the way that the outside world models it.
The major components of the TCA Classifications model are:
Class category: A broad subject area within which you can classify parties. A class category is a logical grouping of one or more class codes and allows for rules to be defined for how the category code structure is set up, as well as which entities can be assigned to these categories.
You can define class categories to meet the needs of your organization. For example, you can define class categories consistent with special business considerations, pricing arrangements, or terms for a party.
Class code: A specific value of the class category. These class codes can be organized in a hierarchical fashion. Class codes are grouped together into categories.
For example, if you want to specify the industry sector to which a party belongs, you can use a predefined class category, such as SIC 1987, which includes the 1987 version of US Standard Industrial Classification (SIC) codes. For example, within the SIC 1987 class category, you could assign the class code Software to a party in the software industry.
All classifications are made up of two key components: a class category and class code. In the user interface, the classification scheme you create is called a class category or classification. The individual values within the classification scheme are called class codes.
Classification rules: The Classifications model allows class categories to have rules and characteristics which define how classifications can be assigned to entities. When you set up class categories, you can create specific rules such as allowing for multiple parents for the codes in the category. For example, a Hardware class category could include the tangible components of a computer system.
Entities with multiple classifications can have the classifications ranked in order of importance for the particular entity. A party can have multiple class codes associated with it. A ranking of these codes could be useful. For example, Oracle could have databases and applications linked to it as separate codes. If you are part of an organization interested in databases, you might rank the Database class code higher than the Application class code.
Class code hierarchy: A hierarchy of class codes within a class category. For example, you could set up the High Tech class category, and the class codes associated with the High Tech class category are: Software, Hardware, Applications, PCs, Printers, and Consulting. These codes are set up in a hierarchical manner by assigning the parent codes to the appropriate children.
High Tech
Software
Applications
ERP applications
CRM applications
Consulting
Hardware
PCs
Printers
Consulting
When you create a class code hierarchy, three options are available to administer the hierarchy. You can:
Assign one or more parents to a code. As shown in the example above, Consulting can be found under both the Hardware and Software parent class codes.
Allow one or more codes to be assigned to an entity. Using the schema above, both Applications and Printers could be assigned to an Organization party.
Allow the assignment of higher level codes to an entity, not just the lowest level code. With the schema above, for example, a company could be assigned the Software code, even though that code is not at the lowest level, or leaf, node.
The Create Class Category and Update Class Category pages provide a list of the valid entities that the class codes within a class category can be assigned to.
A classification schema can be built using standards such as the NAICS (North American Industrial Classification System), NACE (European Union's Statistical Classification of Economic Activity), or SIC (Standard Industrial Classification) classification schema, or on user-defined classifications based on your organization's business needs. For example, you can define a class category to determine if there is a special business consideration, special pricing arrangement, or special term for a customer.
If you use the seeded standard classification schema, then you do not have to set up user-defined categories and codes.
The Oracle Trading Community Classifications model includes the following standard class categories and class codes:
SIC 1987: The 1987 version of the US SIC schema. This is the most popular industrial classification in U.S.
NACE: The industrial classification schema used in European countries.
NAICS: Introduced in 1997 to replace the SIC schema. This includes the 2012 NAICS code as well.
SIC 1972: The 1972 version of the US SIC schema. Used by Dun & Bradstreet for classifying companies in Canada.
SIC 1977: The 1977 version of the US SIC schema. Used by Dun & Bradstreet for classifying companies in European countries.