Defining Incoterms and freight terms

Use these instructions to define Incoterms and freight terms. You can then assign them to your customer and vendor records.

  1. Select System Administrator > Setup > Table Code Value.
  2. In the Table List field, select Freight Terms.
  3. Click New to update the list of freight terms used in the system.
  4. Specify the three-letter Incoterm or freight term.
  5. Specify the description (up to 24-characters) for the Incoterm or freight term.

    We recommend you use the official International Chamber of Commerce (ICC) description with the three-letter term, because this description displays in the Freight Terms list in associated modules. For example, use “Ex Works” as the description for the three-letter “EXW.”

  6. Click Save.
  7. Optionally, in Extended, select the Bill Account Code to specify who is paying the freight bill for the Incoterm or freight term. You can select Customer or Distributor.
  8. Optionally, select the Freight Terms Type to determine purchase order, sales order, and vendor invoice costing processing when automatic freight allocation is enabled in SA Administrator Options-Vendors-Invoice Defaults.

    The freight terms type differs for customer and vendor records. Select from these options or leave the field blank:

    • Prepay and Add
    • Pickup
    • Destination
    • 3rd Party
    • Collect
  9. Click Save. Repeat these steps until you have entered all of the Incoterms and freight terms you anticipate using.
Related topics