Sending Files to Third-Party for Freight Payment Re: Incoterms 2 Field

[former_member512089]

We send a nightly shipment file to a third party who processes our freight payments. We run into an issue when we send shipments that have terms such as FCA Origin vs. FCA Destination. As you know, that incoterms 2 field is a text field, so it's a little difficult to program around that - plus, any city or port can be entered as incoterms 2. Basically we are trying to find a way to correctly exclude those shipments that should NOT be sent for 3rd party payment, based on what incoterms 2 says...because it makes a big difference whether it says Origin or Destination. I was wondering how other people are dealing with this same issue?

[Former Member · Accepted solution]

Hi Anne,

Not clear if you are using SAP ERP or TM or both.

Even though Incoterm 2 is free text in ERP, you define all incoterm 2 places properly in TM so that the field can't be used freely. So you basically assign the Incoterm relevant ones Location (master data) to a name/code- and you can only use this name/code in the transactions.

Plus, the ideal way in this situation would be to use incoterm 1 as the differentiator here(whether TM or ERP). Apart from FCA(origin), if the goods can be handed over at the destination city or port you could use DAP(Delivered at Place) and DAT(Delivered at Terminal) respectively. You can even check if other incoterms(part 1) are more suited.

This of course if there isn't not too much dependence on the existing program.

BR

narender

[former_member512089 · Accepted solution]

Thank you so much Narender! We are just using ECC and not TM. I will definitely look into both options, although I do like using Incoterm 1 for both. Thanks again!