Material codes

Do you need material codes?

Yes.

Material codes have several functions:

  • They associate Autotask products and inventory items with a tax category that determines their tax rate on Autotask quotes and invoices. Refer to Configuring your tax table.
  • They reference a general ledger account and an external number that are used in the transfer of billing items to an external accounting software
  • They allow exported billing items to be mapped to the proper general ledger account in an external accounting software
  • They can appear on quotes and invoices on their own, as generic billing items
  • They categorize product sales for reporting purposes

A material code is required for items on the Products list, so you must set up at least one material code.

Whether you need more than one depends on the number of tax categories required for products in your tax jurisdiction. Refer to Configuring your tax table.

About system material codes

Some Material Codes are system codes that are automatically created in Autotask.

  • Block Purchase, Retainer Purchase, and Ticket Purchase are the billing items for prepaid contracts.
  • Discount and Discount Non-Taxable are used to create either a taxable or a non-taxable credit for an item.
  • Because a Material Code is required for products on the Products list, three generic system codes, Taxable Products, Non-Taxable Products, and Miscellaneous, are provided for general use. For example, users can apply a generic system code when uncertain of the correct material code, or if no existing material code is a good match.
  • RMA [RMA] is a billing item for a Return Merchandise Authorization (RMA) and is used to credit a customer for the charge when a device is returned.

System Codes cannot be deactivated or deleted, and editing may be limited.

How to...