SA Table Code Value Setup - Freight Terms field descriptions

Select Customeror Distributor to indicate who pays the freight bill for the Freight Terms code. Otherwise, leave blank. If a Freight Terms with the Bill Account Code designation for a customer or distributor is specified on a purchase order, the Freight Billing Account field updates based on your company, or warehouse, and the carrier specified in the Ship Via code. If a Freight Terms without the Distributor Bill Account Code designation is specified on a purchase order, you can manually specify any freight bill account number, such as the customer’s account.

Specify a description for the code.

Freight Terms codes define freight billing methods that indicate who 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.

Freight Terms codes and descriptions are created in SA Table Code Value Setup. You can use International Commercial Terms (Incoterms), or you can create and define your own freight terms. For example, specify cod to represent freight collect. Indicate who is paying the freight bill for a freight term in the Bill Account Code field.

For Incoterms, add the three-letter International Commercial Terms (Incoterms) relevant for your organization. The International Chamber of Commerce (ICC) has established a pre-defined list of Incoterms. For example, CFR (Cost and Freight), EXW (Ex Works). We recommend that you use the official International Chamber of Commerce (ICC) three-letter term and its description because this description is displayed in the Freight Terms list in associated modules. For example, use “Ex Works” as the description for the three-letter “EXW.”

Freight terms defaults can be assigned to a vendor or customer record, and these default settings update the purchase order or 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.

This value identifies the type of freight term and is used to determine purchase order, sales order, and vendor invoice costing processing in Distribution SX.e when automatic freight allocation is enabled. Select from these options to indicate the Freight Terms record type or leave the field blank. The freight terms type differs for customer and vendor records:

Prepay and Add
Customer: Freight is paid up front and then passed to customer with an upcharge.
Vendor: Vendor pays freight and passes the charge to you as the customer on their invoice.
Pickup
Customer: Customer picks up and is not charged freight.
Vendor: You, as the customer, pick up or arrange pick up and pay your own freight.
Destination
Customer: You pay freight and do not pass freight charges to the customer.
Vendor: The vendor pays freight, and no freight charge is passed to you as the customer.
3rd Party
Customer: The customer designates another company to which freight is billed.
Vendor: You, as the customer, designate another company to which freight is billed.
Collect
Customer: The customer pays freight on their account.
Vendor: You, as the customer, pay freight on an account of your choice.

If a Freight Terms value with the Prepay and Add or 3rd Party type is specified on a purchase order, the Freight Expected option is enabled. If a Freight Terms value with the Collect, Destination, or Pickup type is specified on a purchase order, the FOB Destination option is enabled.

If a Freight Terms value with the Prepay and Add type is specified on a sales order, the Freight Outbound option is enabled.