Purpose of Incoterms on Contract item level?

[Former Member]

Dear Gurus

We are using SRM 7 calassic scenario with ECC 6 baceknd.

in Contracts, Incoterms can be maintained on header as well as item level.

But when a PO is created out of the contract (via SC), only the incoterms on hader level is trannsfered.

My question is therefore, what is the purpose of the incoterms in the contract on item level?

in which scenarios are they used?

Kind regards

Kwame

[Former Member · Accepted solution]

Hi,

From SRM 7.0 onwards all contracts in SRM are central contracts.

In central contract different items can be distributed to different back end systems.

So the details like inco term and payment term etc can be maintained in item level also and distributed to respective back end systems.

With Regards,

Malay

[Former Member]

Thanks Malay for you quick reply.

So it means that, normally the incoterms on item level on he contract should be distributed to the PO in th backend. is this correct?

if correct, should it be standard or are extra settings required?

at the moment the incoterms on item level is no being transfered.

Kind regards

Kwame