Terms of agreement between buyer and seller whereby ownership passes when merchandise is delivered to the freight carrier, and the buyer pays the transportation cost.
Terms indicating that the buyer must pay to get the goods delivered. (The buyer will record freight-in and the seller will not have any delivery expense.) With terms of FOB shipping point the title to the goods usually passes to the buyer at the shipping point. This means that goods in transit should be reported as a purchase and as inventory by the buyer. The seller should report a sale and an accounts receivable. To Top
A business term meaning that the buyer of merchandise bears the shipping costs and acquires ownership at the point of shipment.