Quotation FOB Codes

Free on Board (FOB) codes enable buyers and vendors to define their respective responsibilities when drawing up a purchase order.  They define at what point ownership of the delivered merchandise occurs.  For example, if the FOB code indicates "shipping point," ownership occurs when the merchandise  is loaded on the carrier.  If the FOB code indicates "delivery point," ownership occurs when the merchandise is delivered to the warehouse receiving dock.  The FOB is important because it defines liability during transport.  The Quotation FOB Code is the one to take into account when using the quotation price data in purchase order placement.  Since different FOB values can result in different prices, the codes can be used to differentiate quotations.

The default value during quotation creation is retrieved from the Vendor Master File.  It can be modified to another existing code on the FOB Code category on the Reference File.

Note:    A warning message appears in the purchase order maintenance conversation if the FOB code of a quotation used for purchase order line pricing differs from the FOB code on the purchase order header.