Incoterms

International Commercial Terms, or Incoterms, are widely accepted trade terms that specify the obligations, roles, and responsibilities of buyers and sellers in cross-border transactions. They establish clear guidelines regarding the delivery of goods, risk transfer, transportation costs, insurance, customs clearance, and other logistics-related responsibilities. To streamline international trade operations, Odoo integrates Incoterms within its Sales, Purchase, and Accounting modules. These terms help businesses define delivery conditions transparently in their sales and purchase agreements, reducing misunderstandings and ensuring smooth transactions.

By default, Odoo includes all 11 standard Incoterms, ensuring compliance with international trade practices:

* EXW (Ex Works) 

* FCA (Free Carrier) 

* FAS (Free Alongside Ship) 

* FOB (Free on Board)

* CFR (Cost and Freight)

* CIF (Cost, Insurance, and Freight) 

* CPT (Carriage Paid To) 

* CIP (Carriage and Insurance Paid To) 

* DPU (Delivered at Place Unloaded)

* DAP (Delivered at Place)

* DDP (Delivered Duty Paid) 

- When creating an invoice or vendor bill, navigate to the Other Info tab and select the appropriate Incoterm.

- An Incoterm Location can be specified to define the relevant delivery point.

- Example: If CIF (Cost, Insurance, and Freight) is chosen, the destination port should be specified as the Incoterm location.

You can configure a default Incoterm to apply to new invoices and bills automatically.

Go to Accounting/Invoicing > Configuration > Settings and click Customer Invoices. Choose an Incoterm from the list of default Incoterms.

* Ensures clarity in trade agreements.

* Reduces risks of miscommunication.

* Automates international trade documentation.

* Simplifies compliance with shipping and customs regulations.

Odoo’s Incoterm feature helps businesses handle international transactions efficiently while ensuring buyers and sellers understand their obligations.