on 09-06-2007 6:47 AM
Hi,
We always calculate FReight baed on KGS. We give incoterms CIF to a group of customers. If incase customer resides very far he has to pay the same charge. Instead can we calculate incoterms based on Distance?
Hello friend,
Let me tell you first that calculation method is something different and must be considered as just a kind of tool to calculate the fright charge in condition type in SAP. Where as an Incoterm is a kind of an agreement between a customer and the vendor transportation.
As you are saying that you are using CIF to a group of customer, there personally I will suggest you to go for different Incoterms or define new incoterms if the standard one is not fit for your requirement. And no, we cant treat any of those standard Incoterms as we want because these are well defined by International Chambers of Commerce and well accepted in world trade.
Incoterms deals and makes clear viz. Who pays the shipping charges? When does the title to the goods change hands? Who pays for the freight? It means from which pocket the money will be paid and also whats the agreed basis. Now calculation comes with the condition type. And we have well enough flexibility there in our pricing.
First of all let me make it clear to you that Incoterms are not a SAP defined terminology. It is defined by International Chamber of Commerce as International Commercial Terms and now popular known with its short form Incoterms.
Incoterms are standard trade definitions most commonly used in international sales contracts. Devised and published by the International Chamber of Commerce, they are well accepted at the heart of world trade.
We have 13 Incoterms given below:
1) EXW - Ex Works
2) FCA - Free Carriage and Freight
3) FAS - Free Alongside Ship
4) FOB - Free On Board ship
5) CFR - Cost and Freight
6) CIF - Cost, Insurance, and Freight
7) CPT - Carriage Paid To
8) CIP - Carriage and Insurance Paid To
9) DAF - Delivered At Frontier
10) DES - Delivered Ex Ship
11) DEQ - Delivered Ex Quay
12) DDU - Delivered Duty Unpaid
13) DDP - Delivered Duty Paid
If you want to make it clearer go to OVSG where we can define Incoterms. And for make calculation in distance you better go to the condition type and set R in calculation Type. You also can write coding for calculation method in pricing procedure screen. So we have quite enough to get the solution.
At last if you want to use Kg and Km both of them then better go for form and difine in condition formula condition type in pricing procedure screen as i am not sure that using exclusion will give you the solution in case you want to use Km and Kg togather at a time to calculate fright.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
You can do it, maintain condition record of the freight condition type like KF00 with UOM = Kilometer in T.Code: Vk11.
Regards
AK
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
User | Count |
---|---|
99 | |
9 | |
9 | |
5 | |
4 | |
3 | |
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.