Setting up ship terms
Ship terms indicate when the buyer or seller take possession of the merchandise during the shipment process. You can assign ship terms to a vendor during purchase order vendor setup using PO Vendor (PO10.1). The ship terms that you assign to vendors default on all purchase orders placed for that vendor, unless you override the ship term on the purchase order.
To set up ship terms
Access Ship Terms (PO02.1).
Type or select the procurement group, ship terms, and description.