Use the Inventory Item Category functionality in Oracle Inventory to model product fiscal classifications. You can create either a single product fiscal classification type or a hierarchy of product fiscal classification types that matches the segments of the Inventory category.

You can either use existing Inventory category sets or set up new Inventory category sets for use with product fiscal classifications. After you set up Inventory item categories and associate them with product fiscal classifications, the corresponding product fiscal classification code defaults to the transaction line for any item that belongs to the inventory category set. See: Setting Up Product Fiscal Classifications for more information.

You can also specify a default Inventory category set for a given country. The Inventory category associated with the item for this default category set defaults to the transaction line. See: Setting Up Country Default Controls for more information.

To model Inventory item categories for product fiscal classifications, you create categories and category sets and associate product fiscal classification types to the Inventory item category set.

The Inventory setup tasks to model product fiscal classifications are:

• Define Inventory Value Set

• Define Inventory Item Category Structure

• Define Category Set

• Define Inventory Categories

• Associate Inventory Items to Category Sets

You complete this setup task flow for each Inventory-based product fiscal classification type that you plan to define.

Define Inventory Value Set

Define a value set with the value type that the segments of the item category structure will use. Select a value type for the product fiscal classification codes that you intend to define, for example, alphanumeric code or numeric codes.

Define Inventory Item Category Structure

Define a category structure for the Inventory category set that you will use to create product fiscal classification types. If you are modeling a hierarchical classification system, then create a segment for each level in the hierarchy.

Set subcategory segments as Not Required.

Define Category Set

Define a category set for the category structure that you created. Use a naming convention that corresponds to the product fiscal classification type that you intend to create.

Define Inventory Categories

Define the values for each segment of the category structure. The values represent the product fiscal classification codes.

This is a sample representation of numeric codes for the Brazilian CNAE and NCM product fiscal classification:

Associate Inventory Items to Category Sets

Assign one or more Inventory categories belonging to the category set to the Inventory items that you intend to use on transactions.

After you set up an Inventory item category set, use E-Business Tax to set up one or more product fiscal classification types and associate them with the Inventory item category set. If you are setting up a hierarchy of product fiscal classification types, define the starting point and the number of digits that make up each level code value in the hierarchy. See: Setting Up Product Fiscal Classifications for more information.