Incoterms recommended work flow

Modify your work flow to address the use of Incoterms in the Freight Terms and Transfer Location fields.

System administrators must set up valid Incoterms for your organization. Before Incoterms are assigned to customer or vendor records, you may be required to negotiate and establish agreements with customers and ship tos, and vendors and ship froms, regarding the appropriate Incoterms. An Incoterm appropriate for a customer may be different from an Incoterm appropriate for that customer’s ship tos. The same is true for a vendor and their ship froms.

Procedure training for operators should address specifying an accurate Incoterm for a specific customer or vendor. Freight Term values are validated by the system, but Transfer Location values are not. Operators must ensure that the Transfer Location is relevant to the specified Freight Term.

The Freight Terms and Transfer Location values that are specified in the customer and vendor records are displayed as the default value in other modules. For example, the values set up in Customer Setup are displayed in Sales Order Entry. The default value can be overridden by the operator. Your procedures should determine when overriding is allowed.