Though SAP also has an inventory movement type (107) which can accept goods at the origin, the standard SAP solution doesn’t have end to end integration to use the Incoterm “EXW’, origin acceptance along with movement type 107. Standard SAP provides the capability to use the Incoterm “EXW” in the purchasing documents such as purchase orders, contracts and/or scheduling agreements. In international commerce trading terminology it is called EX-Works procurement and recognized by the International Commercial Term (Incoterm) “EXW”.
In other words, the buying entity takes the financial ownership of the goods at the vendor premises and is therefore liable to pay the vendor even though the goods have not yet physically arrived at the buyer’s location (plant/warehouse).
In import procurement, the buyer or purchasing organization typically negotiates with a vendor to accept goods or to take ownership of goods at the vendor premises.
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