1.8 NAICS Codes Maintenance

This topic describes about systematic instructions to maintian NAICS codes.

NAICS Codes (North American Industry Classification System)

The North American Industry Classification System (NAICS) is a standardized classification system used by businesses and governments in the United States, Canada, and Mexico to categorize industries based on their economic activities. NAICS codes are used for statistical analysis, tax reporting, government contracts, and regulatory compliance.

Structure of NAICS Codes

A NAICS code is a six-digit number, structured as follows:

  • First Two Digits (Sector) – Identifies the broad industry sector (e.g., Manufacturing, Retail, Healthcare).
  • Third Digit (Subsector) – Further categorizes the industry within the sector.
  • Fourth Digit (Industry Group) – Specifies a more detailed industry classification.
  • Fifth Digit (NAICS Industry) – Represents a particular industry within the group.
  • Sixth Digit (National Industry) – Identifies country-specific variations, if applicable.

Common Uses of NAICS Codes

  • Government Contracts & Grants – Businesses use NAICS codes to qualify for contracts and funding.
  • Tax Reporting & Compliance – IRS and other agencies classify businesses based on their industry.
  • Market Research & Analysis – Companies use NAICS codes to study industry trends and competitors.
  • Regulatory Reporting – Many agencies require businesses to report data using NAICS classifications.

Initiate NAICS Management

  1. On Home screen, click Party Services, under Party Services, click Maintenance.
  2. Under Maintenance, click Naics Details, under Naics Details, click Create Naics Details.
    The Create Naics Details screen is displayed.

    Figure 1-13 Create Naics Details


    Description of Figure 1-13 follows
    Description of "Figure 1-13 Create Naics Details"

  3. On Create Naics Details screen, specify the following attributes.
    For more information on fields, refer to the field description table.

    Table 1-11 Create Naics Details - Field Description

    Field Description
    NAICS Code The North American Industry Classification System (NAICS) Code is a six-digit identifier used to classify businesses
    NAICS Name The NAICS Name is the official industry title associated with a specific NAICS code, describing the type of business activity it represents.
  4. Click Save.

View and Edit Naics Maintenance

Once the record is authorized by the checker, the user can view the Entity Maintenance.

  1. On Home screen, click Party Services, under Party Services, click Maintenance.
  2. Under Maintenance, click Naics Details, under Naics Details, click View Naics Details.
    The View Naics Details screen is displayed.

    Figure 1-14 View Naics Details


    Description of Figure 1-14 follows
    Description of "Figure 1-14 View Naics Details"

Parent topic: Configurations