What is Incoterms in SAP (SD - Sales and Distribution)?

SAP Term: Incoterms

• Component: SD

• Component Name: Sales and Distribution

• Description: International commercial term A codification of international rules for the interpretation of the commonly used terms in international trade. An international commercial term Incoterm defines the terms of sale and the passing of risks for import and export of merchandise. Incoterms include the following: EXW - Ex Works FCA - Free Carriage and Freight FAS - Free Alongside Ship FOB - Free On Board ship CFR - Cost and Freight CIF - Cost, Insurance, and Freight CPT - Carriage Paid To CIP - Carriage and Insurance Paid To DAF - Delivered At Frontier DES - Delivered Ex Ship DEQ - Delivered Ex Quay DDU - Delivered Duty Unpaid DDP - Delivered Duty Paid

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• Key Concepts: 
  Incoterms are a set of international trade terms developed by the International Chamber of Commerce (ICC) to help buyers and sellers define the responsibilities of each party in a transaction. In SAP Sales and Distribution (SD), Incoterms are used to define the terms of delivery for goods and services. 
  
  How to use it: 
  In SAP SD, Incoterms are used to define the terms of delivery for goods and services. The Incoterms are entered in the sales document header and can be used to determine the freight costs, taxes, duties, and other costs associated with the delivery. The Incoterms also determine who is responsible for the costs associated with the delivery. 
  
  Tips & Tricks: 
  When entering Incoterms in SAP SD, it is important to ensure that they are entered correctly. Incorrectly entered Incoterms can lead to incorrect freight costs, taxes, duties, and other costs associated with the delivery. 
  
  Related Information: 
  For more information on Incoterms in SAP SD, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_ERP_SD/6.0/en-US/f3d8f9a7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b1/.