The Customer Invoice Item Code document is used to create an item code. 

An item code is a representation of a product or service provided by your department to a customer.

An item code must be established before a customer can be invoiced. An organization can assign specific accounting information to each item. This accounting information is defaulted on the Customer Invoice and Customer Credit Memo documents and can be overridden on either of these documents if necessary. Invoice item codes are unique to the organization. After the document is approved, you will be able to create an invoice for the customer.

When setting up new item codes, the Taxable indicator default is No (unchecked). If the item is taxable, check the box.

Note: Services are generally not taxable while goods are. Please contact Tax Accounting to determine if your product is taxable and whether it must be reported as Unrelated Business Income Tax (UBIT).

Best Practices

When setting up item codes, keep in mind that many customers prefer more, rather than less, detail. If the invoice doesn't provide enough detail, your customers may hold off on paying until they get clarification for what they are being invoiced. Here are a couple of suggested approaches:

• Create separate item codes for each item or service. For example, if you offer five types of vaccines, create an item code for each type.
• Create generic item codes and modify the description on each invoice. For example, if you offer five types of vaccines, create one item code for vaccines and then modify the description when you create the invoice.

Routing

Document routes to the Fiscal Officer(s) assigned to the account(s) cited/any applicable Organization Review hierarchies on the document for review and approval.