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 Incoterms and Shipping/Delivery Instructions

Use

Incoterms

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 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.

Shipping Instructions

These are the packing instructions the vendor has to comply with when shipping the ordered materials. You specify them for an item by entering the predefined code for shipping instructions. The corresponding text is then included in the purchasing document printout.

Delivery Instructions

You enter delivery instructions as either header or item text: