Incoterms

[Former Member]

Hi,

Here in KF00 condition type there is INCOTERMS(parts 1+2). what are this parts and when we use these?

[Former Member · Accepted solution]

Hi,

KF00 is the condition type for freight. This is calculated on the 'gross weight' basis.

<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

EG: Your factory is in Aurangabad and your customer is in USA.

<b>Part 1:</b>

Here you specify the incoterm suppose FOB. FOB means free on board.

<b>

Part 2:</b>

Here you will specify upto which point you will bear the freight. Suppose you mention MUMBAI. This means the freight from Aurangabad to MUMBAI will be free and the customer will have to bear the freight from MUMBAI onwards upto his/her factory.

Reward points if solution helps.

Regards,

Allabaqsh G. Patil

[Former Member]

Hi,

Incoterms means Internationally recognized shipping terms.

These terms both paties should agree i.e Company and customer.

There is sinple or two parts in incoterms.

If sinple part The fright will be bared bared by either company or customer.

If two parts, Half fright will be bared by company and remaining half will be beared by customer.

For example, If I say Incoterm, FOB that is free on board. Then u have to specify the place upto where you are giving free on borad.

If i say CIF, that is cost, insurence and fright in this case u need not specify the place because u r not giving fright free. but in the above case u r giving free.

I think this may help you to understand better.

Regards,

Sivalingeswara Rao.B

[sailaja_vadlamudi]

Hi ,

Incoterms

Incoterms are the internationally recognized shipping terms that establish the respective liabilities of both the shipping party and the recipient. For example, a common shipping term is FOB (Free on board). The term can be further qualified by adding the loading port, for example, FOB Boston.

You can create condition records either:

· Based solely on the first part of the Incoterm (for example, FOB)

· Based on the combination of parts 1 and 2 (for example, FOB and Boston)

Freight Conditions

The standard version of the SAP System includes two predefined freight conditions:

· Freight condition type KF00 applies to each item in a sales document. During automatic pricing, the system searches for valid condition records that apply to this freight condition.

· Freight condition type HD00 can only be applied to an entire document. You enter this freight manually during sales order processing.

Regards

Sail