What is freight, Freight and FOB?

Speaking of accounting and terms related to export companies; Even if you have an accountant or accountant who will take good care of your books, there are a few things and conditions you should know. Before I started talking about concepts, I want to tell you a mt story. When my husband and I just started this business, we had no experience in this field. We didn't even have the experience of running any business, so all financial and financial conditions were new to us. When we first started talking to a custom server, I thought he was speaking in another language to us. Even the word shipping sounded very odd to me, "why wouldn't you call a shipment?" I do. So, I know your pain when it comes to business tubing.

FOB destination

FOB destination – The title of the product goes from seller to buyer at destination. This means that the seller is responsible for the loss or damage to the goods until the shipment is delivered to the buyer. For example, you bought a car from Germany with a FOB destination. In this case, if something happens to a car while it has been moved, you have no responsibility and you do not have to pay for any damage or loss to the car. You do not even need to buy the car when it arrives, if it is not in satisfactory condition. All charges are handled by the seller.

Freight Out:

Freight Out (Transportation ) – Terms for recording shipping costs or delivery costs, when the seller is responsible for delivery (FOB destination). (Vendor records shipping costs as freight, transport or delivery fee.)

FOB Free Shipping:

FOB Shipping (FOB Origin) – Title of the product goes from seller to buyer of seller shipping document. This means that the buyer has to pay for the delivery. Basically, if you bought a car with FOB ships or FOB origin terms, you are the one responsible for the delivery and damage or loss of the car. If the car comes in a poor condition due to an accident that happened when the car was sent, you cannot ask for money back.

  • Destination prepaid – seller pays and takes all excise taxes and. (Slightly the same as FOB destination)
  • Prepaid shipping and due date – The seller pays the excise tax but pays them back to the buyer. (For example, when you buy something from Amazon.com, they are usually the price of the shipment in the receipt.
  • Shipment shipping – The buyer pays and takes all the excise taxes, pays the entire cost, only when the car comes to the decision.)
  • Collecting and Allowing Shipping Costs – Buyer pays excise taxes but seller charges the account. (For example, you bought a car that costs you $ 5,000 and you paid for the $ 1000 shipment. Total: $ 6,000. When the car comes and you get the bill from the company that sells you the car, you see they charge you only $ 4000 because they did it

    Shipping to:

    Freight in (transportation in) – Terms for recording shipping costs or delivery charges when the buyer is responsible for delivery (FOB shipping, FOB origin) (the buyer will record this cost as an import or import.)

    Source by Yulia Rinaldi

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