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Function documentation Incoterms 

Use

Incoterms are 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.

 

Integration

Incoterms are integrated into the following SAP Enterprise Buyer applications.

·  Shopping cart: Incoterms are only used in display mode. The Incoterms are transferred from the catalog but are not contained in the standard. You therefore have to maintain the fields INCOTERM_KEY and INCOTERM_LOCATION in the catalog interface in the customer include 'CI_OCI_CUSTOMER_EXTENSION' accordingly.

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

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

·  Bid: The Incoterms exist on both header and item level. The bidder can, for example, offer to pay the freight costs. This criterion is then transferred into the evaluation of bids in the SAP Business Information Warehouse (BW).

·  Invoice: Incoterms are only used in display mode.

In SAP Supplier Self-Services (SUS), Incoterms are only displayed. The XML interface is enhanced with both fields INCOTERM _KEY and INCOTERM_LOCATION.

 

Activities

Incoterms are defaulted from the vendor master or from the contract when a source of supply is assigned to a purchase order. You can overwrite the defaulted values manually.

The logic here corresponds to the default logic of the RosettaNet standard:

·  If you enter an Incoterm on header level, this is valid for all items that do not explicitly have an Incoterm.

·  If you then enter an Incoterm on item level, this overwrites the Incoterm entered on header level.

This default logic is resolved during print output.

 

SAP supplies the following 13 Incoterms as standard:

EXW

EX WORKS

FAS

FREE ALONGSIDE SHIP

FOB

FREE ON BOARD

CFR

COST AND FREIGHT

CIF

COST, INSURANCE AND FREIGHT

CPT

CARRIAGE PAID TO

DES

DELIVERED EX SHIP

DEQ

DELIVERED EX QUAY

DAF

DELIVERED AT FRONTIER

DDP

DELIVERED DUTY PAID

DDU

DELIVERED DUTY UNPAID

FCA

FREE CARRIER

CIP

CARRIAGE AND INSURANCE PAID TO

 

If you want to define an Incoterm for a legal transaction with a vendor, for example, carry out the following activity in the Implementation Guide (IMG) of Supplier Relationship Management : SRM Server ® Cross-Application Basic Settings ® Create Incoterms.

In Customizing, the indicator for location (field INCOTERM_LOCATION) is set as standard. In this case, you must enter a location. If you deactivate an indicator or do not set an indicator when creating a new Incoterm, the system does not require you to enter a location.

 

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