Incoterms

Incoterms are standardized trade terms used in international transactions to define the rights and responsibilities of buyers and sellers. They establish the obligations related to the delivery of goods, the transfer of risks, and the distribution of costs between the parties involved. Incoterms specify important details, such as the point at which the risk and costs transfer from the seller to the buyer, the responsibility for transportation, insurance, customs clearance, and other relevant aspects of the transaction.

Define an Incoterm

To define an Incoterm manually, create an invoice or bill, click the Other Info tab, and select the Incoterm.

Default Incoterm configuration

You can set a default Incoterm rule to automatically populate the Incoterm field on all newly created invoices and bills. Under Accounting/Invoicing -> Configuration -> Settings, scroll down to the Customer Invoices section, and select an Incoterm in the Default Incoterm field.