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Pgm: POFOBFM –FOB Maintenance; standard Treeview path: Purchase Order > Setup > Local Tables>Enter FOB Code
The FOB Maintenance screen is used to establish the shipping terms associated with purchase orders. FOB stands for freight on board. The shipping terms determine who has the right to specify the carrier and routing. It defines the point at which the buyer takes legal title to the goods, and defines who is responsible for payment of freight charges and who is responsible for prosecuting claims against carriers for loss or damage. Numerous terms of shipment can be used, but the most common are:
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FOB Buyer’s Plant: The FOB Buyer’s Plant passes legal title from the seller to the buyer when the carrier delivers the material to the buyer’s plant. Since the seller retains ownership during transit, the seller has the right to select the carrier as well as the responsibility for paying the freight charges.
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FOB Seller’s Plant: The FOB Seller’s Plant passes legal title to the buyer when the carrier accepts the material for shipment at the seller’s plant. Consequently, the buyer assumes responsibility for the carrier selection and payment of freight charges. Purchasing under these terms is common because companies want control of an order during transit.
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FOB Seller’s Plant, Freight allowed to Buyer’s Plant: The FOB Seller’s Plant, Freight allowed to Buyer’s Plant is similar to the previous arrangement with regards to legal liability. However, the shipper agrees to reimburse the buyer for the freight charges.
Enter one or more 2-character FOB codes with FOB name with a maximum of 30 characters. This list will appear on the FOB Codes/Names LOV in purchase order entry instructions pop-up, blanket order entry, [Default] pop-up, and Change Order [Instruction] pop-up.