Incoterms and Duties Handling for Microsoft Dynamics 365 Business Central
Set the delivery term on every international shipment and control who pays duties and taxes at the border. Dynamic Ship for Microsoft Dynamics 365 Business Central lets shipping teams set a default Incoterm per customer, override it per shipment, and route billing for duties and taxes to the sender or a third party, all from the Package Worksheet.
At a Glance
- Set a default Incoterm per customer so international orders ship consistently.
- Override the Incoterm on any individual shipment from the Package Worksheet.
- Route duties and taxes to your account, the customer’s account, or a third party.
- No unfilled Incoterm ever ships blind: the system defaults to DDU (delivered duty unpaid).
Have a Question about Incoterms and Duties Handling?
Key Capabilities
Default Incoterm per customer. Build a package option template with the Incoterm set, then assign it to a customer through Customer Options. Every international shipment for that customer ships with the correct term automatically, with no manual entry required from order to order.
DDU default when unset. If no Incoterm is defined in the package options, Dynamic Ship defaults to DDU (delivered duty unpaid), so the receiver is billed by the carrier rather than by a shipment that goes out with an undefined term.
DDP and other terms are supported. Delivered duty paid and other Incoterms are available and can be set per package option or per customer default, depending on how your international agreements are structured.
Duties and taxes billing by payment type. The Sender payment type keeps duties and taxes on your account, a setting typically used for DDP shipments. Third-Party and Receiver payment types route the charge elsewhere, to a customer’s own carrier account or a specified third-party account.
Manual override on the Package Worksheet. Any shipment can have its Incoterm and payment type adjusted at pack time using the –PACKOPTION pack command, even when a customer default is already in place.
Configured alongside the rest of international shipping. Incoterms and duties settings are in the same package options screen as tax identifiers, customs value, and commercial invoice details, so a shipper can set up an international order in one place rather than switching screens.
How Incoterms and Duties Work in Dynamic Ship
- Build a package option template with the Incoterm and payment type you want to use as defaults.
- Assign that template to a customer, ship-to code, or shipping agent combination in Customer Options.
- When a shipper packs an order for that customer, the Incoterms and duties billing apply automatically to the package.
- If a shipment needs a different term, the shipper opens Package Options from the Package Worksheet (or scans –PACKOPTION) and updates the Incoterm and payment type before printing the label.
- If nothing is set anywhere, the shipment defaults to DDU, so the carrier bills the receiver rather than leaving the term blank.
Why Dynamic Ship’s Incoterms Handling Stands Out
International terms are easy to get wrong manually, and getting them wrong can mean duty bills landing on the wrong party or a customer receiving an unexpected charge at delivery. Dynamic Ship removes the guesswork by defaulting the Incoterm at the customer level, so every shipper packing an order for that account ships it the same correct way without having to remember the customer’s specific agreement.
Because Incoterms and payment type live inside the same Business Central package options screen as the rest of the international shipment, including customs value, HS codes, and tax identifiers, a shipper handles the full cross-border shipment configuration in one place instead of piecing it together across separate systems or carrier portals.
Who Uses Incoterms and Duties Handling
Shipping coordinators set up customer-level Incoterm defaults so international accounts ship correctly without manual review on every order. Shippers on the packing floor use the Package Worksheet override when a specific shipment needs a different term than the customer default. Customer service representatives rely on consistent Incoterms application to answer inquiries about duties and billing accurately when a customer calls about an international delivery.
Frequently Asked Questions
Dynamic Ship defaults the shipment to DDU (delivered duty unpaid), meaning the carrier bills the receiver for duties and taxes. This prevents a shipment from going out with an undefined term, but it also means you should confirm your customer defaults are set correctly if your agreements typically call for DDP or another term.
Yes. Build a package option template with the Incoterm you want, then assign it to the customer on the Customer Options page. Each customer can have its own default, and you can further scope defaults by ship-to code or shipping agent if a customer needs different terms for different destinations or carriers.
Set the payment type to “Sender” in the package options, which is the setting typically used with a DDP Incoterm. To bill a customer’s own account or a third party instead, use the Receiver or Third Party payment types with the appropriate account details.
Yes. From the Package Worksheet, open Package Options or scan the –PACKOPTION command to adjust the Incoterm and payment type for that specific shipment. The customer’s default template remains unchanged for future orders.