SA Table Code Value Setup - Freight Terms overview

System Administrator > Setup > Table Code Value

Use this page to define freight term codes, which indicate if you, the customer, or the vendor is paying the freight bill.

Freight terms are required for corporate- and warehouse-level freight programs that use portions of the Electronic Data Interchange (EDI) TD5 additional carrier details segment.

You can use International Commercial Terms (Incoterms), or you can create and define your own Freight Terms. You can also specify which freight terms should be billed to your freight bill account by specifying Distributor in the Bill Account Code field. The distributor designation causes the default setting for the Freight Bill Account field to update the purchase order.

You can set up Freight Terms defaults for a vendor in Vendor Setup or a warehouse in Vendor Ship From Setup. These default settings update the purchase order when it is created or copied, but they can be changed.

You can set up Freight Terms defaults for a customer in Customer Setup or Customer Ship To Setup. These default settings update the sales order when it is created, but they can be changed. The automatic freight allocation enhancement uses the freight terms entered for a sales order to determine if freight and third-party addons from the purchase order should be distributed to the tied sales order.