What Is It-Freight Terms

What Is It?

Freight Terms - Free On Board (FOB)

This list defines the various FOB codes used on the Departmental Repair Order (DRO), Departmental Purchase Order (DPO), and Purchase Order (PO) documents in DaFIS.

Code	Terms of Sale	Responsibility for Freight Cost and Transit Risk
01	F.O.B. Destination, freight prepaid	Seller - Pays freight charges Seller - Bears freight charges Seller - Owns goods in transit Seller - Files claims (if any)
02	F.O.B. Destination, freight collect	Buyer - Pays freight charges Buyer - Bears freight charges Seller - Owns goods in transit Seller - Files claims (if any)
03	F.O.B. Destination, freight collect and allowed	Buyer - Pays freight chg & deducts from invoice Seller - Bears freight charges Seller - Owns goods in transit Seller - Files claims (if any)
04	F.O.B. Origin, freight prepaid	Seller - Pays freight charges Seller - Bears freight charges Buyer - Owns goods in transit Buyer - Files claims (if any)
05	F.O.B. Origin, freight collect	Buyer - Pays freight charges Buyer - Bears freight charges Buyer - Owns goods in transit Buyer - Files claims (if any)
06	F.O.B. Origin, freight prepaid and charged back	Seller - Pays freight charges and adds to invoice Buyer - Bears freight charges Buyer - Owns goods in transit Buyer - files claims (if any)
07	F.O.B. Destination, freight prepaid and charged back	Seller - Pays freight charges and adds to invoice Buyer - Bears freight charges Seller - Owns goods in transit Seller - files claims (if any)
96	See Below (Special Instructions)	Buyer - varies Seller - varies (specifications indicated in body of Purchase Order or as an attachment to the Purchase Order)
97	See Below for Details (Special Instructions)	Buyer - varies Seller - varies (specifications indicated in body of Purchase Order or as an attachment to the Purchase Order)
98	No Shipment Involved	Not Applicable
99	Pick Up/Will Call	Buyer - Bears freight charges Buyer - Owns goods in transit