Skip to content

Inco Terms

Inco Terms (International Commercial Terms) are standardized trade terms used in international commercial transactions to clearly define the responsibilities of buyers and sellers for the delivery of goods.

In Velosity, Inco Terms follow a hierarchical flow from global definitions down to specific sales documents.

Inheritance Flow

Inco Terms are managed and applied through the following lifecycle:

  1. Global Inco Terms: A master list of standardized terms (e.g., Incoterms 2020) maintained at the system level.
  2. Organization Catalog: Administrators copy relevant terms from the Global list into their specific Organization (Tenant) catalog. Custom terms can also be added here.
  3. Customer Defaults: When managing a Customer, you select a default Inco Term from the Organization's catalog. This can further be refined per Ship-To address.
  4. Sales Quote / Order:
    • On Create: When a new Sales Quote is created, the system automatically copies the Inco Term from the Customer record (or the selected Ship-To address).
    • Updating: Once created, the Inco Term on the quote can be manually updated or overridden if the specific transaction requires different terms.

Setup and Management

Global Inco Terms

Global Inco Terms are the standard set of terms available to all tenants in the system. Typically, these follow the ICC standard (e.g., Incoterms 2020).

Administrators can view global terms at: Setup > Inco Terms > Global

Organization Inco Terms

Each organization maintains its own catalog of Inco Terms. You can initialize your organization's catalog by copying from the Global list or by creating custom terms.

To manage your organization's Inco Terms: 1. Navigate to Setup. 2. Click on Inco Terms. 3. From here, you can: * Add: Create a new custom Inco Term. * Edit: Modify an existing term's code or description. * Delete: Remove a term from your organization's catalog. * Global: View the global list and copy terms to your tenant catalog.

Usage

Inco Terms are used in the following areas:

  • Customers: Define a default Inco Term for a customer.
  • Customer Ship-To: Define specific Inco Terms for different delivery locations.
  • Sales Quotes: Select or override the Inco Term for a specific quotation. The Inco Term selected on the quote is included in the generated quote documents.

Data Model

An Inco Term definition consists of: * Code: The 3-letter abbreviation (e.g., FOB, EXW). * Description: The full name of the term (e.g., Free On Board). * Mode: Specifies if the term is for Sea/Inland Waterway only or Multimodal. * Effective Year: The version of Incoterms being used (e.g., 2020).