What is Cost and Freight in SAP SD-FT - Foreign Trade?

SAP Term: Cost and Freight

• Component: SD-FT

• Component Name: Foreign Trade

• Description: An international commercial term under which the seller exporter pays the cost of the merchandise and all shipping costs to the named port of destination. When the goods have been delivered on board the vessel, the risk of loss or damage to the goods and costs that occur after are transferred from the seller to the buyer. Cost and Freight CFR requires the seller to clear the goods for export. The CFR term can only be used for sea and inland waterway transport.

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• Key Concepts: 
  Cost and Freight (C&F) is a term used in international trade that indicates that the seller is responsible for the cost of transporting goods to a port of destination, as well as the insurance costs. It is a type of Incoterm, which is an internationally accepted set of terms and conditions for international trade. C&F is typically used when goods are shipped by sea or inland waterway. 
  
  How to use it: 
  In SAP SD-FT Foreign Trade, C&F can be used to define the terms of a contract between a buyer and seller. The seller is responsible for the cost of transporting goods to the port of destination, as well as any insurance costs. The buyer is responsible for any additional costs associated with getting the goods from the port to their final destination. 
  
  Tips & Tricks: 
  When using C&F in SAP SD-FT Foreign Trade, it is important to ensure that all parties involved are aware of their responsibilities and obligations. Additionally, it is important to ensure that all necessary documents are in place before goods are shipped, such as bills of lading and insurance documents. 
  
  Related Information: 
  For more information on C&F and other Incoterms, please refer to the International Chamber of Commerce’s website at https://iccwbo.org/resources-for-business/incoterms-rules/.