Incoterms
Introduction
Incoterms (International Commercial Terms) are a set of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law.
In the context of FMS, Incoterms define the responsibilities of buyers and sellers for the delivery of goods under sales contracts. They specify who is responsible for costs, risks, and insurance at different stages of the transport.
Setting Up Incoterms
Business Central typically comes with standard Incoterms predefined. However, you can review, modify, or add terms if needed.
- Choose the
icon, enter Incoterms, and then choose the related link. - Review the existing list of Incoterms (e.g., EXW, FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR, CIF).
- To add a new term (e.g., if new Incoterms versions are released), choose the New action.
- Fill in the following fields:
- Code: Enter the standard abbreviation for the Incoterm (e.g., 'EXW', 'FOB').
- Description: Provide the full name or a description of the Incoterm (e.g., 'Ex Works', 'Free On Board').
- (Add other relevant fields based on codebase analysis, e.g., links to specific logic or reporting flags)
Using Incoterms
Incoterms are typically assigned on Shipment Documents.
Use the Document Contract Strategy Template to assign the calculation of specific costs to the relevant parties in a shipment.