What is best practise for use of Item Code?

What do you think is the best practice for assigning Item Code? Should a business code ever be used for Item Code?

I am working on an ERPNext implementation with an existing part numbering system and many many engineering drawings identified with an 8-digit semi-smart numeric “part number” (the first 2 digits give the main category and sub-category, e.g. mechanical sub-assembly). I have been entering the pre-existing part number as Item Code when creating an Item in ERPNext (when one exists), or using a new part number following the existing numbering standard, because this is how everyone here knows parts. By entering the legacy part number as Item Code, ERPNext generally shows the part number on forms and reports, which is also convenient for everyone.

I would call my legacy “part number” an example of a “business code” because it is specific to the business. Should a new custom field always be created for such a “business code"?

I also think the HS code discussed here is also a business code because the entity has to first fit the model of the Harmonized Commodity Description and Coding System. Agree?

I personally think that the best practice is the most commonly used practice, and that is the use of the Harmonized Commodity Description and Coding System used by thousand of corporations around the globe.

Hello @NickMalef, my understanding of HS code from the Wikipedia article ( https://en.wikipedia.org/wiki/Harmonized_System https://en.wikipedia.org/wiki/Harmonized_System) is that the HS code is a classification, and it is allowed for two or more parts to have the same HS code. Is this correct?

My understanding of Item Code in ERPNext is that Item Code is unique, i.e. it is guaranteed that no two parts will have the same Item Code. Do you agree? If so, how do you make the HS code unique for each part? I suppose one could add a unique numeric suffix, but it would seem simpler and more effective to create a new custom field for the HS code instead. Do I misunderstand something?

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My company uses internal part numbers. We dont use HS codes at all.

@ Dale_Scott

Actually no, Harmonized system does not allow for two or more parts to have the same HS code.

For instance:
1207 21 00 00 = Other oil seeds and oleaginous fruits, whether or not broken, Cotton seeds
1207 30 00 00 = Other oil seeds and oleaginous fruits, whether or not broken, Castor oil seeds
1207 40 10 00 = Other oil seeds and oleaginous fruits, whether or not broken, Sesamum seeds
1207 50 10 00 = Other oil seeds and oleaginous fruits, whether or not broken, Mustard seeds
And so on…

So every commodity has a unique global, unified, 10 digit code.

In fact, HS code has 22 digits but this is a long story and it is complicated for businesses except Customs Clearance companies like mine, so no need to bother after the 10th digit…

In my personal view this is the correct use of item code.

Nick

Hi Nick

I am happy to defer to you as you work in a clearing company, but I don’t think you are correct.

We manufacture U-bolts

We use the HF code 731815 for all of our u-bolts (perhaps this is not the correct thing to do?)

But there are thousands of different U-bolt sizes. We cannot use the same item code for every product we manufacture

We use our own nomenclature

So for us, our item code will be ubolt/t316/m105085*25 for example describes uniquely a t316 stainless steel british standard ubolt for a 40 nominal bore pipe

surely every company will need to devise theie own coding system