Difference between Destination Point (DAP) and Shipping Point (EXW) for Intercompany Transfer Orders

Inventory and Accounting Impact of Incoterms for Intercompany Transfer Order:-

The incoterm you select on a transfer order impacts accounting and inventory information.

The following are default incoterms:

1.Ex Work (EXW) – Inventory ownership is transferred at the shipping point.

2. Delivered at Place (DAP) – Inventory ownership is transferred at the destination point.

Note: When creating a transfer order, you can only select EXW or DAP. After the order status is pending approval or pending fulfillment, you can choose another incoterm.