SA Table Code Value Setup - Freight Terms field descriptions

Select Customeror Distributor to indicate who pays the freight bill for the Freight Terms code. Otherwise, leave blank. If a Freight Terms with the Bill Account Code designation for a customer or distributor is specified on a purchase order, the Freight Billing Account field updates based on your company, or warehouse, and the carrier specified in the Ship Via code. If a Freight Terms without the Distributor Bill Account Code designation is specified on a purchase order, you can manually specify any freight bill account number, such as the customer’s account.

Freight Terms codes define freight billing methods that indicate who is paying the freight bill. Freight terms are required for corporate- and warehouse-level freight programs that use portions of the Electronic Data Interchange (EDI) TD5 additional carrier details segment.

Freight Terms codes and descriptions are created in SA Table Code Value Setup. You can use International Commercial Terms (Incoterms), or you can create and define your own freight terms. For example, specify cod to represent freight collect. Indicate who is paying the freight bill for a freight term in the Bill Account Code field.

For Incoterms, add the three-letter International Commercial Terms (Incoterms) relevant for your organization. The International Chamber of Commerce (ICC) has established a pre-defined list of Incoterms. For example, CFR (Cost and Freight), EXW (Ex Works). We recommend that you use the official International Chamber of Commerce (ICC) three-letter term and its description because this description is displayed in the Freight Terms list in associated modules. For example, use “Ex Works” as the description for the three-letter “EXW.”