SAP Incoterms Overview in SAP MM and SAP SD

SAP Incoterms is, Commonly-used trading terms that comply with the standards established by the International Chamber of Commerce (ICC).
Incoterms are, in sample words, the codification for internationaly communs term in foreign terms.

The post will list all the Incoterms used in SAP Incoterms. It will give the functional definition as well as a technical overview of SAP Incoterms.

Incoterms in SAP

In SAP, incoterms are defined on two fields:

  • INCO1: Incoterms (Part 1): it is based on SAP Reference Table
  • INCO2: Incoterms (Part 2): it is free text ( up to 28 characters)

Here you can create and assign it in your SAP customer master.
Each time, a SAP Sales Order is generated, the system will retrieve the customer’s incoterms if maintained in SAP Customer Master Data.
In other terms, the in SAP MM the incoterms retrieved is based on Ship-to Party.

List of Standard Incoterms in SAP

The official rules of the International Chamber of Commerce (ICC) regarding how to define trade terms. The ICC in Paris developed the INternational COmmercial TERMS (INCOTERMS) as a uniform set of rules that are used to help define costs, risks and obligations of buyers and sellers in international trade. 

The abbreviations for Incoterms 2000 include the following:

  • CFR Costs and freight
  • CIF Costs, insurance & freight
  • CIP Carriage and insurance paid to
  • CPT Carriage paid to
  • DAF Delivered at frontier
  • DAP Delivered At Place
  • DAT Delivered At Terminal
  • DDP Delivered Duty Paid
  • DDU Delivered Duty Unpaid
  • DEQ Delivered ex quay (duty paid)
  • DES Delivered ex ship
  • EXW Ex Works
  • FAS Free Alongside Ship
  • FCA Free Carrier
  • FOB Free on board

How to create new incoterms in sap ?

To create a new incoterms in SAP:

In SPRO, go to
Sales and Distribution –> Master Data –> Business Partners –> Customers –> Billing Document –> Define Inco Term 

Or launch directly the SAP Tcode for Incoterms : OVSG – Define Inco terms

You can also handle SAP Incoterms configuration within OVSG SAP Tcode.

SAP Incoterms Table

The reference table for incoterms in SAP is the table TINC.
The SAP text table for Incoterms if you want to get SAP incoterms description is TINCT.

Maintain SAP Incoterms for Purchasing

SAP Incoterms in PO are stored in

  • in Header line
    • EKKO-INCO1
    • EKKO-INCO2
  • in Items line
    • EKPO-INCO1
    • EKPO-INCO2

If you want to maintain a condition record for Incoterms, you can use the SAP Standard condition table “048”. The keys for this table are Purchasing organization, Incoterms 1, Plant.
Create an access sequence with this table and assign it to the required Condition Type.

The SAP Tcode is: MEKI Conditions for Incoterms

Then, to configure this condition, go to
SPRO > MM > Purchasing > Conditions > Define Price Determination Process > Maintain Condition Table  and choice table “048”

SAP Incoterms Enhancement

In SAP MM the incoterms retrieved is based on Ship-to Party.

If you want to enhance the SAP Incoterms determination in SAP MM for Sales Order, you must implement  the user-exit USEREXIT_MOVE_FIELD_TO_VBKD in the standard program MV45AFZZ.
For example, you can assign incoterm by plant or location …

If you want to go further about Incoterms in SAP, check help.sap.com about this topics.

 

Sab125

Hi. I have been working as SAP Technical and functional for a decade. Through this blog, I am trying to share with you my experience. Hopefull, it makes your ways easier path ...Sab