on 07-12-2012 5:13 AM
Hi all
Can any one explain me what is the main purpose of Payment terms and Incoterms in VX11N ( Financial Document )?
Where will it be Effected ?
Regards,
Anu
Hi Anuradha,
When u do export On the letter of credit ,
Incoterms is the international Commercials terms where the both the party agreed upon the agreement
costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade
Without the incoterms You cant be export the goods to other country
Ex- DDU - delivery duty paid ,means that door to door delivery of goods bear by the seller all charges
Payment terms Is for composed of cash discount percentages and payment periods
As per my domain knowledge I explained ,
Regards
Ramesh
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hello Ramesh,
Request you to reply only to the question asked.
The question here is Why to input Payment Terms & Incoterms in Financial Documents?
What you have replied is basic defination of Incoterms which anyone can search on wikipedia (from where you have picked the text) & other sources on net.
Thanks,
Jignesh Mehta.
Hi Jignesh ,
Thanks For ur reply
I dint pick from the any source , i worked In a logistic company for four years thats why i know the terms and condition in export process , just to make her understand better i have clarify
And i have answered both the valid point too in my answer
Regards
Ramesh
RAMESH you wrote:
Hi Anuradha,When u do export On the letter of credit ,
Incoterms is the international Commercials terms where the both the party agreed upon the agreement
costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade
Without the incoterms You cant be export the goods to other country
Ex- DDU - delivery duty paid ,means that door to door delivery of goods bear by the seller all charges
Payment terms Is for composed of cash discount percentages and payment periods
As per my domain knowledge I explained ,
Regards
Ramesh
Content from http://en.wikipedia.org/wiki/Incoterms
The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade.
I wish you might have contributed this wikipedia topic.
Further DDU(Delivered Duty Unpaid) is replaced by DAP(Delivered at Place).
And I hope you explained DDP - Delivered Duty paid, not DDU.
@ Anuradha:
Jignesh already provided you the gest of your requirement.
Further I will maintain you can only make modification to revocable LC & irrevocable unconfirmed LC.
Hi Ramesh,
RAMESH PRUSTY wrote:
U dint call to Apple as (Mango)
What does it mean? Can you please rephrase it?
Your previous message explaining the Incoterms was neatly phrased and excellent. But, all the other messages are differently phrased. Appreciate if you can use the same style of posting messages (as in your previous message of Incoterms explanation).
Regards,
Ravi Sankar
Thanks J Praksh ,
When u do new things there is a chance of mistake , if u learn from mistake you have not really lost
I always appreciate all your inputs like from jignesh, lakhmipathi had given in past
I always take is as positive note
Think is that I will not compromise where i am export
I can write more however doe to my project work not able to do so......
and lastly heart fully thanks you also
Regards
Ramesh
Please check following thread, where nice example is provided by Lakshmipathi Sir for payment terms:
- http://scn.sap.com/thread/1033696
As like LC is intergal part of foregin trade. So, is Incoterms.
As, Incoterms determine the so called critical points for three different fields of responsibility:
1. The risk (insurance)
2. The costs (freight, duties, etc.)
3. The documents
Critical points indicate where the resposibility of the seller transfers to the responsibility of the buyer.
For information in incoterms refer following link:
- http://en.wikipedia.org/wiki/Incoterms
- http://help.sap.com/saphelp_srm40/helpdata/en/35/26c795afab52b9e10000009b38f974/content.htm
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi
I am using "C" - Irrevocable confirmed
Please explian me what is main use of those 3 radio buttion ?
which i need to select ?
As per my knowledage C is used when Bank can give the assurance to seller
but i am not sure for remaining
can you please explain Fin, Doc Category { I checked some of thread i m not clear }
Regards,
Anu
Hello Anu,
Request you to read this link: http://en.wikipedia.org/wiki/Letter_of_credit & also F1 Help in SAP & google search for explanation on difference types of Financial Documents.
Thanks,
Jignesh Mehta
Hello Anuradha,
There are two uses of putting Payment Terms & Incoterms in Financial Documents in VX11N.
First - After shipping the Goods, when you submit the LC Documents to Bank to get the payment, the Bank will make the Payment only if the Goods are shipped within the date mentioned in LC & as per the payment terms mentioned in LC. Thus it is veryimportant to mentioned Incoterms & Paymetns in Financial Doucment in SAP.
Second - You can put a check that while creating the Sales Order the Payment Terms & Incoterms in Sales Order & LC should be same. So that the LC Document subbmited to Bank are not rejected. Infact at my client site we have put a check that unless the Payment Terms & Incoterms in LC & Sales Order are same, system will not allow to create Delivery.
Thanks,
Jignesh Mehta
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
User | Count |
---|---|
104 | |
12 | |
11 | |
6 | |
6 | |
4 | |
3 | |
3 | |
3 | |
3 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.