What is prepaid bill-to party in SAP TM - Transportation Management?

SAP Term: prepaid bill-to party

• Component: TM

• Component Name: Transportation Management

• Description: The business partner that is billed for the first part of a transport, according to agreed Incoterms. The prepaid bill-to party is not necessarily the prepaid payer. For example, the Incoterm agreed between a seller and a buyer in a transport from Germany to the U.S. is FOB Free On Board from location Hamburg. The seller pays for the transportation charges to Hamburg and the buyer pays for the charges from Hamburg to the U.S. In this example, the seller is the prepaid bill-to party.

Smart SAP Assistant

• Key Concepts: 
  Prepaid bill-to party is a feature in SAP Transportation Management (TM) that allows customers to pay for their freight charges before the goods are shipped. This payment is made to a third-party provider, such as a freight forwarder, who then pays the carrier for the shipment. This feature helps to reduce the risk of non-payment and ensures that the carrier is paid on time.
  
  How to use it: 
  To use prepaid bill-to party in SAP TM, customers must first set up a third-party provider in the system. Once this is done, customers can select the prepaid bill-to party option when creating a shipment. The system will then generate an invoice for the third-party provider, who will then pay the carrier for the shipment. 
  
  Tips & Tricks: 
  When setting up a third-party provider in SAP TM, make sure to include all relevant information such as contact details and payment terms. This will ensure that payments are made on time and that any disputes can be resolved quickly. 
  
  Related Information: 
  For more information on prepaid bill-to party in SAP TM, please refer to the official SAP documentation. Additionally, there are several online resources available that provide detailed tutorials and best practices for using this feature.