A Product code is used to distinguish between the various types of products/services offered by the bank. Each of these could be totally different and hence it is helpful to categorize them. Each business sector in the application can have their own set of product codes. Example: A Product code for business sector 'Import Letters of Credit' can be based on field 'Available by' that distinguishes if it is a Sight or Usance L/C .

Each Product code can be further categorized into 'Subtype' and 'Variant'. A Product subtype is a second level classification of the product code. Example: A Product Subtype for business sector 'Import Letters of Credit' can be based on field 'Confirmation Instructions' that defines if the L/C needs confirmation or not. A Product variant is sub classification to the subtype and the product code. Example: A Product variant for business sector 'Import Letters of Credit' can be based on the field 'Domestic' that defines if the L/C is a domestic or an International L/C.

Once the codes are defined, it is auto populated in the business transaction under the 'Completion' panel based on the defined logic. The banks can then use the Product codes for their own purpose like updating references or to populate fees/commissions based on the codes, reporting etc. It is also helpful to define these codes, so that it can be used to identify the product throughout the business module without the need to check the contents of the contract.