Material Master & HSN classification Automation Application

Material master or item master creation is one of the most important activities which a company needs to do. Whether they are procuring goods or services from their vendors or when they are selling goods & services to their customers, material or item master needs to be setup in their accounting platform to create all types of different transactional documents for examples, purchase orders, quotations, invoices, sales orders, delivery documents, etc. Even for the purpose of accounting & tax compliances like for determining duty rates, custom tariffs, GST or VAT rates, etc., material master proper identification is a must requirement. For any medium to large size company, depending on the nature of their business, material or item master can have thousands of items which needs to be setup properly.

Control code or HSN of the item (SAC in case of service) needs to be properly ascertained based on the global & local standards released by tax authorities. Companies needs to classify HSNs for the goods which they are procuring, importing or selling. HSNs varies across product category, material, specific, SKUs, colour, price, size, etc. HSN classification is a complex activity as it is based on product research (technical know-how), legal notes & country specific rulings/judgements. Companies often need to take services from expert classifiers to determine accurate HSN. Determining correct HSN is quite critical for an importer/exporter/domestic supplier as customs & GST taxes are calculated based on HSN. Incorrect HSN lead to compliance issues which affects company by paying higher duties or penalties.

Use of technology can help the companies to streamline the HSN classification process workflow completely & it can also help company to automatically maintain their item master or add new items as per business requirement. Company may need to maintain different HSN master basis their strategic location/business verticals which can be automated by using an appropriate tech tool. Sepfust's Material master & HSN classification tool solves the above issues with high quality & consistency. Our HSN classification tool can be configured based on company's requirements.

Our tool provides 5 different roles to any company - admin, requestor, classifier, reviewer & approver for automating various workflow steps which are needs to create or update material master & classify the HSNs correctly. It also maintains the complete audit trail of any changes which are done in the material master related to duty rates, tariffs, taxes, control code, UoM (unit of measurement), etc. Our HSN classification application also seamlessly integrates with SAP or Oracle ERP, once approver approvers the item update or new creation request, our application directly update the entry in the SAP & Oracle ERP providing complete automation in the material master & HSN classification workflow.

Some of the important features of our application are as follows -