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

SAP Term: Cost, Insurance and Freight

• Component: SD-FT

• Component Name: Foreign Trade

• Description: An international commercial term under which the seller exporter must not only pay the cost of the merchandise, all shipping costs to the named port of departure, but also procure marine insurance against the buyer's risk of loss or damage to the goods during transport. The Cost, Insurance and Freight term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport.

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• Key Concepts: 
  Cost, Insurance and Freight (CIF) is a term used in international trade to describe the cost of goods, including the cost of the goods, insurance, and freight. It is typically used when goods are shipped by sea or air. The CIF component of SAP SD-FT Foreign Trade module helps companies manage their international trade activities by providing them with the necessary tools to calculate and manage the costs associated with international trade. 
  
  How to use it: 
  The CIF component of SAP SD-FT Foreign Trade module can be used to calculate the cost of goods, insurance, and freight for international shipments. It also provides tools to manage the costs associated with international trade, such as calculating taxes and duties, managing currency exchange rates, and tracking shipments. 
  
  Tips & Tricks: 
  When using the CIF component of SAP SD-FT Foreign Trade module, it is important to ensure that all costs associated with an international shipment are accurately calculated and tracked. This includes not only the cost of goods, insurance, and freight but also taxes and duties, currency exchange rates, and shipment tracking. 
  
  Related Information: 
  For more information on SAP SD-FT Foreign Trade module and its CIF component, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_SD_FT_FOREIGN_TRADE/latest/en-US.