Product Catalog Flow
Understanding Product Records
Product records in Kintsugi map your catalog items to tax classifications. Each product record includes:- Product identifiers: External ID, name, description
- Tax classification: Category, taxability rules
- Physical or digital designation: Affects taxability in some jurisdictions
- Custom tax codes: If applicable
external_product_id. Kintsugi uses the product’s tax classification to determine whether the item is taxable in the customer’s jurisdiction.
Product records are required: You cannot calculate tax or sync transactions without product records. Create products before calling
/v1/tax/estimate or /v1/transactions.Create Products
Endpoint:POST /v1/productsAccess Method: HTTP REST
Purpose: Creates products in the organization’s catalog with tax classification rules. When to Use:
- During initial onboarding (after organization setup)
- When adding new products to the catalog
- Bulk product creation for catalog setup
- Automatically triggered after economic nexus registrations in this application
x-api-key: Organization’s API keyx-organization-id: Organization IDContent-Type:application/json
external_id: Your internal product identifier (must be unique)name: Product nameproduct_category: Product category that determines taxability rulesstatus: Typically set to"APPROVED"for active productsproduct_subcategory: More specific classificationsource: Origin indicator (e.g.,"OTHER","SHOPIFY","WOOCOMMERCE")tax_exempt: Flag indicating if product is exempt from sales tax
external_idshould be your internal product identifierstatustypically set to"APPROVED"for active productsproduct_categoryandproduct_subcategorydetermine tax rulessourceindicates origin (e.g.,"OTHER","SHOPIFY","WOOCOMMERCE")tax_exemptflag indicates if product is exempt from sales tax- Products are referenced in transactions for accurate tax calculation
- In this application, products are created automatically after economic nexus registrations
PHYSICAL, DIGITAL, SERVICE, SOFTWARE, etc.
Example Implementation:
Bulk Product Creation
For platforms with large product catalogs, create products in batches: Example: Batch Creation:Product Data Flow
Automatic Product Creation
In this STaaS application, products are automatically created after economic nexus registrations. This ensures products are ready for tax calculations immediately after registration. When Auto-Creation Happens:- After creating an economic nexus registration
- Products are created with default classifications
- You can update product details later if needed
Best Practices
- Create Before Use: Create products before using them in tax estimates or transactions
- Use Unique External IDs: Use your SKU or product ID as
external_idto prevent duplicates - Set Appropriate Categories: Choose categories that accurately reflect product taxability
- Batch Creation: For large catalogs, create products in batches to avoid rate limiting
- Update When Needed: Update product records if tax classifications change
- Verify Existence: Check if product exists before creating to avoid duplicates
- Handle Errors: Implement retry logic for transient failures
Error Handling
Common Errors:- 409 Conflict: Product with same
external_idalready exists - 400 Bad Request: Invalid category or missing required fields
- 401 Unauthorized: Invalid API key
Product Categories Reference
Common product categories and their tax implications:- PHYSICAL: Tangible goods subject to sales tax
- DIGITAL: Digital products (may be exempt in some jurisdictions)
- SERVICE: Services (taxability varies by jurisdiction)
- SOFTWARE: Software products (may have special tax rules)
- FOOD: Food items (often exempt or reduced rate)
- CLOTHING: Clothing items (may be exempt in some states)
What if I have thousands of products?
What if I have thousands of products?
Create products in batches using multiple API calls. Process products in chunks of 50-100 to avoid rate limiting. You can create products asynchronously before starting your tax calculation integration. Products don’t expire, so you can create them well in advance of using them in transactions.
Do I need to update products if tax rules change?
Do I need to update products if tax rules change?
Kintsugi manages tax rule changes automatically. Product records don’t need updates when jurisdictions change taxability rules. However, if you change a product’s category or type, update the product record to reflect the new classification.
Can I delete products?
Can I delete products?
Products can be archived but typically shouldn’t be deleted if they’ve been used in transactions. Kintsugi maintains product history for compliance purposes. If you discontinue a product, you can stop creating new transactions with it without deleting the product record.