FOB Point is the service provided by the Vendor to the Customer at the time of Shipment of the Order. The Vendor ships the shipment to certain destination without any freight charges to the customer. During the order the Vendor provides the FOB according to the selected customer and Ship-To-Locations for the customer. The vendor pays the cost of transportation, loading cost and any other cost required to transport the goods to the destination. The customer needs to pay the further cost required to transport the goods to the Ship Address.
For example the cloth manufacturing company sells the goods to the customer located in different country. The goods are transported via Airways or water ways by the manufacturer. If the customer demands the shipment by air then the manufacturer transports the goods to the local airport (agreed by customer) at their own cost. If the customer demands the shipment by Water ways then the manufacturer transports the goods to the nearby port (agreed by customer) at their own cost. All the other cost to unload the goods and further transportation is charged to the customer.
New Stuff: Migrate Open Sales Orders from Sage 100 ERP to Sage 300 ERP
So, it will be very useful for the industries to distribute the cost during transport.
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