XML attribute vs XML element

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I use this rule of thumb:

  1. An Attribute is something that is self-contained, i.e., a color, an ID, a name.
  2. An Element is something that does or could have attributes of its own or contain other elements.

So yours is close. I would have done something like:

EDIT: Updated the original example based on feedback below.

  <ITEM serialNumber="something">
      <BARCODE encoding="Code39">something</BARCODE>
      <LOCATION>XYX</LOCATION>
      <TYPE modelNumber="something">
         <VENDOR>YYZ</VENDOR>
      </TYPE>
   </ITEM>

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