Shipment Terms Code

The shipping terms code describes how freight charges are to be paid for shipped merchandise.

• For Purchasing, the shipment terms code are defined on Reference File category 226.
• For Order Processing, codes are defined on category 321.  When a new sales order is created, the initial shipment terms code is established from the default for each ship-to customer.  This value can be manually overridden at order entry time by entering an alternative code.

The default code is maintained on the customer name and address record as a single value for each ship-to customer.  It can be updated using the Customer Master File Maintenance conversation.