When the delivery terms (referred to globally as "Incoterms") are selected on a Sales order or Purchase order, it is also required to indicate a "Delivery terms location". A "Delivery terms location" is the location where the handover of liability happens, according to those delivery terms. E.g. CIP (Carriage & Insurance Paid to) Requires a "Place of destination" e.g. Shanghai airport.

The Delivery terms location is needed on the Sales & Purchase order, as Delivery terms, and the location, are contractual terms and need to appear on the contract between the buyer and the seller. They are also required on Shipments/Loads as they are required on logistics documentation.

"Incoterms" are globally recognized contractual agreements between buyers and sellers and most Delivery terms require a supporting location for the terms to be valid and legally binding.

Link to the International trade Administration's explanation of Incoterms: https://www.trade.gov/know-your-incoterms