Incoterms

[Former Member]

Hi Experts,

May I know what does Incoterms and the free text in SO for? I wish to know from business and SAP perspective?

Cheers.

[Former Member · Accepted solution]

Hi,

<b>INCOTERMS</b>

The official rules of the International Chamber of Commerce (ICC) regarding how to define trade terms.

The ICC in Paris developed the INternational COmmercial TERMS (INCOTERMS) as a uniform set of rules that are used to help define costs, risks and obligations of buyers and sellers in international trade.

The abbreviations for Incoterms 2000 include the following:

EXW: Ex Works

FCA: Free Carrier

FAS: Free Alongside Ship

FOB: Free On Board

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

<b>Significance</b>

When you want to club multiple deliveries to make one invoice at that time INCOTERMS is one of the criteria that should be same for all the deliveries.

<b>FREE TEXT</b>

Sometimes the client wants to enter some information for which there is no field where the data can be stored. For eg:

FREIGHT - To your account

INSURANCE - To our account

BANK CHARGES - To our account

SPECIAL INSTRUCTIONS -

SHIPPING INSTRUCTION - By road to main warehose.

These were a few examples for which we don't have any field. Also customer wants to print this data on the Order Acknowledgement. So what we do is carry out the text determination procedure and we create Text IDs corresponding to the examples mentioned above. When we create the sales order and go to the Header Text there we see those IDs against which we can enter the relevant information to be printed.

Reward points if solution helps.

Regards,

Allabaqsh G. Patil

[Former Member]

Hi,

Go through the following link

http://help.sap.com/saphelp_srm30/helpdata/en/0c/b91b3f7f9e3642e10000000a114084/content.htm

Regards

Ali

[Former Member]

Hi

Commonly-used trading terms that comply with the standards established by the International Chamber of Commerce (ICC).

Use

Incoterms specify certain internationally recognised procedures that the shipper and the receiving party must follow for the shipping transaction to be successfully completed.

Example

If goods are shipped through a port of departure, the appropriate Incoterm might be: FOB ("Free On Board"). You can provide further details (for example, the name of the port) in the secondary Incoterm field: FOB Boston, for example.

[Former Member]

Hi,

As understanding FOB XXXXX (XXXXX = port). Is the port loading port or destination?

How about CIF XXXXX (XXXXX = port). Is the port loading port or destination port?

Regards.

[Former Member]

its upto that point where the companys responsibility seizes

[Former Member]

Hi,

Is that right to say FOB XXXX (XXXX = port of departure) and CIF XXXX (XXXX = port of destination)?

Regards.

[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. The 13 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

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

[Former Member]

Dear Jon Chan,

Please visit the following link:

help.sap.com/bp_autov1500/Auto_DE/documentation/Smart_Forms/Smart_Form_Billing_Document_EN_DE.doc

Hope this helps you.

Do award points if you found them useful.

Regards,

Rakesh

P.S. you can send me a mail at my mail id rakeshsinghchauhan@gmail.com for any specific details