What is incoterms and how it comes

[Former Member]

Hi,

What are incoterms ( no abbrivation pl)?

How the incoterms comes from? I mean is it taking from sold to pary , ship to party, bill to party or payer?

Thanks in advance

[sailaja_vadlamudi]

Hi

From Ship to party.

Sail

[Former Member]

Dear Satish,

Incoterms or international comm. terms and u find in CMR - Sales area Data - billing Tab.

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

Hope this helps you.

Do award points if you found them useful.

Regards,

Rakesh

[Former Member]

Hi

<b>Incoterms</b> are internationally-recognized terms of delivery reflecting the standards set by the International Chamber of Commerce (ICC). For example, the term Free on Board (FOB) means that seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point.

You can specify Incoterms for an order item that differ from those in the PO header. The relevant defaults come from the purchasing info record. When the document is outputted, the item-specific Incoterms are set out in addition to the generally applicable ones at header level.

<b>Incoterms</b>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

Message was edited by:

SHESAGIRI.G

[Former Member]

Hi,

INCOTERMS

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

Significance

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.

FREE TEXT

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.

Reward points if useful

Regards,

Amrish Purohit

[Former Member]

Hi Amrish,

Is Incoterms captures from sold to pary or ship to party?

[Former Member]

Hi Satish,

It is from Ship to Party.

Regards,

Amrish Purohit

[Former Member]

Hi Amrish,

Is it ship to party? ru sure?

But when i checked it by taking two ship to parties

the data captured from sold to party.

Can u pl respond on this immidiatly?

From ur answer i have to develop the functional spec.

Thankd in advance

Satish

[Former Member]

Hi,

It comes from Ship-to party only, no doubts dear

Regards

SD

[Former Member]

Hi,

It has to be ship to party.If something else is coming then there is something wrong or maybe Z involved.

Regards,

Amrish Purohit

[Former Member]

Hi Amrish,

I went to IDES system i did that. I maintained two ship to parties.

ie., one sold to party belongs to 4 activities (sold to party, ship to party, bill to party and payer) and second customer is only ship to party.

when i raised the sales order obviously will get pop up box of 2 ships to parties i choosen second one (only ship to party customer) but i got the incoterms of sold to party.

Thanks in advance

Satish

[Former Member]

Hi Satish,

Incoterms are internationally accepted rules for world trade. In this way, <b>purchasers</b> can collaborate with their <b>vendors</b> to define delivery conditions and connected <b>buyer</b> and <b>seller</b> obligations.

The incoterms would be picked from the sold-to-party as he is the one purchasing the material and ship to party is only a receipent of the goods. Moreover when you use the ship to party account group to create a customer you wouldn't see the Inco terms field.

Regards

Nadarajah Pratheb