What is Incoterms in SAP SRD-CC - Cross-Components?

SAP Term: Incoterms

• Component: SRD-CC

• Component Name: Cross-Components

• Description: International Commercial Terms. An internationally recognized set of rules for the interpretation of the most commonly used terms in international trade. The International Chamber of Commerce ICC in Paris developed the International Commercial Terms INCOTERMS as a uniform set of rules that are used to define costs, risks, and obligations of the business partners involved in a sales contract. Governments, legal authorities, and businesses worldwide accept these rules.

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• Key Concepts: 
  Incoterms are a set of international trade terms developed by the International Chamber of Commerce (ICC) to help traders communicate more effectively. They are used to define the responsibilities of buyers and sellers in international transactions, including the transfer of goods, payment of costs, and other related matters. In SAP, Incoterms are used in the SRD-CC Cross-Components component to define the terms of delivery for goods and services. 
  
  How to use it: 
  In SAP, Incoterms are used in the SRD-CC Cross-Components component to define the terms of delivery for goods and services. The Incoterms can be used to specify the delivery location, payment terms, and other details related to the delivery of goods or services. The Incoterms can also be used to specify who is responsible for paying taxes and duties, as well as who is responsible for insurance and other costs associated with the delivery. 
  
  Tips & Tricks: 
  When using Incoterms in SAP, it is important to ensure that all parties involved in the transaction understand the terms and conditions associated with each Incoterm. It is also important to ensure that all parties involved in the transaction agree on which Incoterm should be used for each transaction. 
  
  Related Information: 
  For more information on Incoterms, please visit the International Chamber of Commerce website at https://iccwbo.org/resources-for-business/incoterms-rules/.