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Delivery Terms Setup

Delivery Terms Setup

Feb 04, 2025

Sales and marketing > Setup > Distribution > Terms of delivery

You must specify terms of delivery to place charges on a packed sales order or transfer order.

Transportation Section

The Supply Chain Cloud adds three fields to the Transportation section:

Freight charge terms

Select a freight term.

OPTION

DESCRIPTION

OPTION

DESCRIPTION

Prepaid

You pay for the freight.

Select Prepaid and turn on the Add transportation charges to orders toggle to send the charges back from Supply Chain Cloud.

Third party

Collect

You pass the account number configured on the customer or Account Assignment for billing.

No rates are returned from the carrier; it cannot be mapped back to the order(s).

Note

If you are using UPS, see Special Cases below.

Consignee

The recipient pays for the freight.

Note

This is only available for domestic shipments. 

The system throws an error if you include a consignee term on an international shipment. 

Important

No account number is needed.

Split VAT

Set Split VAT to Yes to bill the value-added tax to the shipper instead of the customer.

Terms Of Trade

There are two options:

  • Delivered Duty Paid: The vendor pays for the total cost of transporting the goods and is responsible until they are received by the customer.

  • Delivered Duty Unpaid: The recipient is responsible for the total cost of transporting the goods (freight and taxes). A third-party account number must be configured on the customer/sales order if this option is used. 

Delivered Duty Unpaid

Selecting Delivered Duty Unpaid enables the Duties and Taxes Charge Terms field with several options. 

Make a selection to determine who is responsible for paying duties and taxes.

Important

  • Duties and taxes only apply to international shipments. The Duties and Taxes Charge Terms selection is ignored by the carrier on domestic shipments.

  • Duties and taxes charge terms are only configurable for FedEx and UPS. 

  • None: Defaults to the Delivered Duty Unpaid functionality. The recipient is responsible for both freight and taxes. Third-party account number required. 

  • Collect: The recipient pays the duties and taxes. Third-party account number required (unless shipping UPS International - see Special Cases below).

  • Consignee: The recipient pays the duties and taxes. Third-party account number not required. 

  • Third Party: The delivery location receives the goods but a third party pays the duties and taxes. Third-party account number required.



Special Cases



Supply Chain Cloud will pass the Account Number to bill against in the following scenarios:

  • you are using third-party billing

  • you are shipping internationally and the Ship From country does not match the Ship To country

Otherwise, SCC passes the Additional Account Number to bill against.

See DHL Express Credentials for more information.



Make sure to enter the appropriate FedEx account number if you want recipient or third-party billing.

Important

If the account number is missing or incorrect, you will be billed for the shipping costs.



If the UPS account number is set in a currency that is not supported (see Currencies), please reach out to your Avanade support representative.



UPS validates Collect and Third Party billing differently, depending on your selection:

  • Collect: The Ship To ZIP Code is sent for validation. 

  • Third Party: The Customer ZIP Code is sent for validation.



UPS can look up account numbers tied to delivery addresses and charge the recipient the duties and taxes if the shipper does not know the account number.   

To use this functionality, set the following terms:

  • Freight Term: Prepaid 

  • Terms Of Trade: Delivered Duty Unpaid

  • Duties and Taxes Charge Term: Collect 

The duties and taxes charge node is not passed to UPS so UPS looks at the delivery address and bills the appropriate account.





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