Freight Terms

The freight terms code describes how freight charges are to be paid for purchased goods.  When a purchase order is created during Purchase Order Maintenance, the initial freight terms code is established as the default constant for each vendor.  This value can be manually overridden by the user with another valid value on the Reference File.

The default value can be updated using the Vendor Master File Maintenance conversation.

The freight terms have no impact on system processing.

Considerations

Examples of valid freight terms may be:

·     Collect freight on delivery

·     Freight charges prepaid by vendor

·     Freight on invoice