1. Administrator Guide
  2. Purchases
  3. F.O.B Locations

F.O.B Locations

F.O.B. means Freight On Board. F.O.B. locations are an indication of which party, purchaser or vendor, is responsible for the shipping and loading costs. It may also refer to where the liability for damage goods resides.

In North America, the locations generally used are FOB Origin or FOB Destination.

F.O.B. Origin — means the purchaser pays for the shipping costs and takes responsibility (liability) for the purchase when it leaves the vendor's location.

F.O.B. Destination — is the opposite, where the vendor is responsible for costs and liability until the purchase reaches the purchaser's facility.

You may also create F.O.B. locations with specific locations (for example, F.O.B. London) or other conditions based on your company's needs. Ensure there is a clear definition on what each entry represents by entering notes as you set up the F.O.B. Location.

To create a F.O.B. location:

  1. Go to Administration > Application Settings > Purchases > F.O.B. locations.

  2. Select New F.O.B. location from the Create Button.

  3. Enter the F.O.B. location name and any Notes, if desired.

  4. Click Save.