In creation mode, this indicator is activated by default. The Incoterm can be used in the Sales and Purchasing modules.
It is possible to deactivate it, which will be useful, especially in the case of regulatory developments. When the 2010 Incoterms came into effect on January,1st 2011, some 2000 Incoterms were removed. Thus, during the migration of Sage X3, former Incoterms which disappeared due to the new legislation, are automatically created as "Inactive" in order to keep the history of some flows (especially the consultation of items created before the migration of Incoterms).