Commodity Codes are used to categorize products into various groups. Commodity Codes are 4-character codes based on a 2-character Product Line code plus a 2-character Product Group code. For example:

    LLGG - 'LL' represents the Product Line and 'GG' represents the Product Group.

The table below is an example of a character-structured commodity code strategy. Commodity Codes also can be numeric or an alpha-numeric combination. The line/group sorting is the objective of the coding strategy.

Commodity Product Line	Product Group	Description
WMBR		WM		BR	Widgets - Metal, Bronze
WMGL		WM		GL	Widgets - Metal, Gold
WMSL		WM		SL	Widgets - Metal, Silver
WPBL		WP		BL	Widgets - Plastic, Bakelite
WPPE		WP		PE	Widgets - Plastic, Pete1
WPPL		WP		PL	Widgets - Plastic, Polypropylene
WWCD		WW		CD	Widgets - Wooden, Cedar
WWOG		WW		OG	Widgets - Wooden, Old Growth Red Cedar
WWRW		WW		RW	Widgets - Wooden, Red Wood

Commodity Codes are defined in IM09 and are assigned to products in Maintain Inventory Master (IM13). All products require a Commodity Code. When implemented correctly, Commodity Codes offer many benefits, including:

  • Inventory and Sales reports that are summarized, sequenced, detailed or restricted by Product Group and Product Line (Commodity Code).
  • Report sub-totals for each break in Product Group and Product Line.
  • Special Price Lists (IM18) by Commodity Code allow a discount percent to be applied to an entire Product Group or Product Line, eliminating the set up of discount entries for each product.
  • Commission calculations by Commodity Codes depending on the setting in Company Control/Order Entry (CC00/Order Entry).

When a product's Commodity Code is changed:

  • Consider the impact on any Price Lists that might offer a discount at the Commodity Code level; the commodity change may result in different pricing for the product.

  • Consider the impact on any Commission Rate tables where the commission rate is extracted based upon Commodity Code to be sure the correct rate is applied.

  • For sales reports where Commodity Code is part of the record key (e.g. SA51, SA81), sales invoiced after the Commodity Code change will begin accumulating stats in a new record (under the new Commodity Code).

  • For reports where Commodity Code is Sequence to the report (e.g. SA82, IC81), the product, with all of its history, will simply begin reporting under the new Commodity Code.

  • If Commodity Code changes are imported, then be sure to run the Inventory Diagnostic programs (IN71, IN72) and then Purchasing Diagnostic programs (PO75, PO76). These diagnostic programs rebuild cross-reference files that include Commodity Code as part of the record key.

Setting up a Commodity Code:

  1. Click on the Query icon in the Product Line field. This opens the Commodity Product Lines screen:

    • Click on the 'new' folder to create a new record. The IM09 Product Line screen opens:

      • Enter a 2-character code in the Product Line field. This code can be an alpha-numeric combination. The Product Line is a broad classification of similar products, for example Gardening Products.

      • Enter a description of the Product Line in the Description field. The description can be a maximum of 25 characters in length.

      • Click Update to add this code to the system.

    • Select the new code from the list in the Commodity Product Lines screen. The Commodity Product Lines screen closes automatically and the IM09/Commodity Codes screen re-appears with the new Product Line Code and Description.

  2. Enter a 2-character code in the Product Group field. This code can be an alpha-numeric combination. The Product Group is a sub-division of products within a Product Line, for example Planters, which are part of the Gardening line.

  3. Enter a description of the Product Group in the Description field. The description can be a maximum of 25 characters in length.

  4. Click Update to add the code to the system.

The following table outlines the functionality of each button on the Commodity Code folder:

Button Label Icon Functionality
Update Update Saves the information entered for the current commodity code.
Delete Delete Deletes the current commodity code.
Note: You cannot delete a commodity code if the code is assigned to a product in IM13.
New New All fields on this folder clear and you can begin adding a new commodity code record.

Commodity Codes
Commodity Codes