frieght

[Former Member]

While creating frieght condition why two variable keys Incoterms 1 & 2 assigned to it? Also,how freight charge is levied by carrier and invoice needs to be sent from carrier to bill-to-party...

thanks...

[Former Member · Accepted solution]

That was good information.

Anu one, please more info.

thanks...

[Former Member · Accepted solution]

Dear Sumitra,

Please refer -

[Incoterm and partner|]

I hope, this would be helpful, some extent.

Best Regards,

Amit

[Shiva_Ram · Accepted solution]

Hi,

Apart from the details provided for incoterms condition above, you can add the frieght rate condition type in delivery document.

Once the freight rate is obtained from carriers, the same can be added to the delivery frieght condition type and then the billing document can be created. By this way, freight rate will be added in the invoice itself, which then be sent to customer.

We handled freight rating by the following way;

Once PGI is done in the delivery a background program extracts the delivery details and send to freight carriers for frieght rating. When the details are extracted it applies billing block.

When our other programs, which run in background mode, receives the rated value from the freight carriers, is populating the value with the freight condition type and removes the billing block. Then the invoices will be created. This is automatic method of populating the freight value.

The same can be done manually also. Apply billing block in the delivery document. Enter the frieght rate value in the pricing, then release the billing block. By this way, you make sure that the frieght rate is entered before billing document is created.

Regards,

[Former Member]

thanks...

[Former Member]

Dear Sumitra,

Incoterms are meant for freight, insurance, and duties (delivery-related charges).

Incoterm information is maintained in -

Customer Master --> Sales Area Data --> Billing

Incoterms 2 is used if the primary Incoterm 1 is, for example, CIF, then the second field provides details of point from which the delivery leaves (for example, "CIF Delhi").

In pricing determination, system first checks from most specific to general and so it first searches for pricing record KF00 with key Incoterms part 1 & 2 to determine freight price.

If record is not found by above process, then it searches for KF00 record with key Incoterms which has field incoterms 1.

Technical Info:

A033 Incoterms

A034 Incoterms Part 1 + 2

Also, refer:

[Incoterm 2|]

[Incoterm & Incoterm 1 & 2|]

I hope, these informations would help you, some extent.

Best Regards,

Amit

[former_member217082]

Hi Sumithra

While maintaining freight condition record we will get INcoterms 1 & 2 which tells that customer incoterms is so and so , say for example if customer incotems is CFR & Delhi then we have to maintain the Incoterms 1 & 2 as CFR & Delhi . So we will be maintaining some amount as per the requirement

Now Say if plant is in Delhi only then the customers will have incoterms 1&2 as CFR & Delhi

Generally the freight charge can be beared by the customer also . or by the company also. IT is all as per the requirement . That is the reason the freight charges are to be beared by the bill to party only.If company is paying then it will be deducted and the company pays the amount

Customer wont pay to carrier , may be sometimes he may have to pay. If he pays he claims then we will issue a credit memo to that customer as he paid .

But if the company is paying then a company will look after those issues

Regards

Srinath