Incoterms is an international commercial term which defines the terms of sale and the passing of risks for import and export of merchandise. Incoterms plays an important role in global business. In other words, Incoterms is the codification of international rule for the interpretation of the commonly used terms in foreign trade.
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
To create new Inco Terms:
Go to Sales and Distribution --> Master Data --> Business Partners --> Customers --> Billing Document --> Define IncoTerm.
Here you can create and assign it in your customer master so that whenever order is generated for that customer, it will populate automatically into the sale order.