FOB

Examples of FOB in the following topics:

• Recording Purchases

  • When purchases should be added to inventory depends on the Free On Board (FOB) policy of the trade.
  • FOB is an abbreviation which pertains to the shipping of goods.
  • FOB specifies which party (buyer or seller) pays for which shipment and loading costs and where responsibility for the goods is transferred.
  • Precise meaning and usage of "FOB" can vary significantly.
  • The initials FOB represent ownership and responsibilities involving the shipping and receiving of goods.

• Recognition of Revenue at Point of Sale or Delivery

  • Shipping terms are typically "FOB Destination" and "FOB Shipping Point".
  • For goods shipped under FOB destination, ownership passes to the buyer when the goods arrive at the buyer's receiving dock; at this point, the seller has completed the sales transaction and revenue has been earned and is recorded.
  • If the shipping terms are FOB shipping point, ownership passes to the buyer when the goods leave the seller's shipping dock, thus the sale of the goods is complete and the seller can recognize the earned revenue.

• Shipping and Transportation

  • Freight on board, or free on board (FOB): the exporter delivers the goods at the specified location (and on board the vessel).
  • For example, "FOB JNPT" means that the exporter delivers the goods to the Jawahar lal Nehru Port, India, and pays for the cargo to be loaded and secured on the ship.

• Occult Blood

  • Fecal occult blood (FOB) refers to not-visibly-apparent blood in the feces that may indicate problems with the gastrointestinal tract.
  • Blood in the feces that is not visibly apparent is referred to as fecal occult blood (FOB).

• Geographic Pricing

  • FOB origin (Free on Board origin): The shipping cost from the factory or warehouse is paid by the purchaser.