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 customers 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
o

EKKO-INCO1

EKKO-INCO2

in Items line
o

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