incoterms from sold to party why

[Former Member]

hello,

can any one tell me why incoterms is picked from sold to party and not ship to party

as frieght is calculated on incoterms and which should be the location of ship to party and not sold to party

can any one tell me the business logic of why SAP standard provided incoterms from sold to party

[former_member184555 · Accepted solution]

Hi

Because the SP is the direct customer to the company and negotiates the terms of delivering the goods(Incoterms). The SP will have different incoterms with different SH he is mainataining. Not all the Ship to Parties he has will have the same incoterms and sometimes it changes ffrom material to material for the same SH. It is out of SAP.

Thanks,

Ravi

[Former Member]

Hi Vipin,

For any finance related transaction only Sold to Party is responsible. Sold to party is legally bound to accept all the terms and condition of the vendor not any other partner. That is the reason you can treat sold to party as any other standard partner function but you never treat other partner as sold to party.

The sold-to party is contractually responsible for sales orders.

Regards,

AKT