incoterms

[Former Member]

hi

what is incoterm how will it work

Hema

[Former Member · Accepted solution]

Apart from all one important thing is that if incoterms are different then it results in invoice split.

[Former Member]

INternational COmmercial TERMS - Codification of international rules for the interpretation of the most commonly used terms in international trade. They define the terms of sale and the passing of risks for import and export of merchandise

Incotems used to maintain condition record for freight

[Former Member]

hi hemavathy,

incoterms are basically related to shipping of the products from the factory to the customer. Some examples are mentioned below:

FOB - freight on board,

EXW - ex works xyz,

CIF - costs, insurance & freight

etc etc.,

you can maintain this as follows: IMG - sales & distribution - master data - business partners - customers - billing document.

Hope i have cleared your query. Reward valuable oints if solution helps,

Regards,

Allabaqsh G. Patil

[Former Member]

Hi,

You define the Incotermsin this menu option. You specify the Incoterms in the customer master record.

From the customer master records, the SAP System copies the Incoterms automatically into the sales and distribution documents.

Note

In pricing, you can use the Incoterms to determine freight charges.

Actions

1. Specify an alphanumeric key which can have up to 3 characters and the description for the Incoterms.

2. If you want a location in the master records to be mandatory, you have to set the corresponding indicator and also specify part 2 of the Incoterms during master record maintenance.

3. Make sure that the key of the Incoterms is entered in the customer master records.

Reward points if useful

Regards,

Amrish Purohit

[Former Member]

HI Hema,

INCO Terms (INternational COmmercial terms) are commonly used commercial terms. An example could be, when you go to buy a vehicle the showroom executive will say the bike is Rs. 50,000 'Ex-Showroom'. or Rs.60,000 'On Road'. Ex-Showroom( Price in showroom without taxes), On Road ( Price includes, taxes and registration charges) are INCO terms.

Similarly in business companies use different INCO terms.INCO terms generally give the scope of risk/ownership.

The commonly used INCO terms

>EXW - Ex Works - Price in factory without taxes duties/freight

> FCA - Free Carriage and Freight - Price includes carriage and freight

> FOB - Free On Board -Price includes taxes and loading, but freight not included

> CIF - Cost, Insurance, and Freight

> DAF - Delivered At Frontier - Delivery till border of country, Import/customs duty not included.

Reward if useful

Regards

S Pradeep

[Former Member]

HI,

incoterm means international commerical terms , which are maintained in between the company and the customers.

for example . if you want to send a material from your company to customers site we define the incoterms in which we specify who is going to bear what costs.

REward points if the answer is helpful

REgards,

Murali

[Former Member]

Sales and Distribution (SD) International commercial term

A codification of international rules for the interpretation of the commonly used terms in international trade.

An international commercial term (Incoterm) defines the terms of sale and the passing of risks for import and export of merchandise.

Incoterms include the following:

• EXW - Ex Works

• FCA - Free Carriage and Freight

• FAS - Free Alongside Ship

• FOB - Free On Board ship

• CFR - Cost and Freight

• CIF - Cost, Insurance, and Freight

• CPT - Carriage Paid To

• CIP - Carriage and Insurance Paid To

• DAF - Delivered At Frontier

• DES - Delivered Ex Ship

• DEQ - Delivered Ex Quay

• DDU - Delivered Duty Unpaid

• DDP - Delivered Duty Paid

[Former Member]

Hi,

When you create a sales order system will search the customer master record in that under sales area under billing tab what incoterms you maintain that incoterms will be detrmined in the sales order.These incoterms are useful for determining the freight conditions

Hope it helps you

Mastan