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Incoterms

Former Member
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What is the use of Incoterms in SAP.

How it is used and how it is related to other area inside SAP

How Incoterms is related to pricing..

Please let us know in detail.

David.

Accepted Solutions (0)

Answers (4)

Answers (4)

safeer_rahman2
Contributor
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HI David....

If Incoterm is not included as part/field of conditon record then it is not having any influence on pricing....

Experts, Please correct me if I am wrong...

Thanks,

Safeer Rahman

Former Member
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Hello,

Inco Terms (International commercial term):

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.

Internationally accepted rules for world trade. In this way, purchasers can collaborate with their vendors to define delivery conditions and connected buyer and seller obligations

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

Purchase order: The Incoterms exist on both header and item level.

Contract: The Incoterms exist on both header and item level.

Invoice: Incoterms are only used in display mode

Prase

Lakshmipathi
Active Contributor
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Dear David

Any sales you make, it depends mainly on Inco term. That is whether your selling price has taken into consideration the inco terms like ExWorks, FOB, CIF etc.,

Based on this Inco term only, your selling price differs. In fact, if you want to have your pricing procedure based on this, you can have the same by assigning Tables 33 and 34 for PR00 in V/07.

thanks

G. Lakshmipathi

Former Member
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In access sequence if we dont assign incoterms table then how it is related to pricing.

David.

Lakshmipathi
Active Contributor
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Dear David

In that case, it is only an information to marketing people that the sales are executed against that Inco terms. In standard, apart from what I already indicated, there is no impact. However, if you want to have some specific controls based on this Inco Term, with the help of Copy Control / User Exit, you can control.

thanks

G. Lakshmipathi

Former Member
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Hi,

Incoterms 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 shipu2019s 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.

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

Best Regards,

Amit