The meaning of the Shipment Method of Payment codes obviously can vary by industry and
TP. At one site, "PP" was used
to relate the fact that the vendor included the shipping cost in the product price.
Another code may mean that the
buyer has arranged for shipping and will be responsible for the shipping costs.
Another code may indicate that the
buyer is responsible for shipping costs and can expect to see a separate line item for
freight on their invoice. Note
that the FOB01 only refers to the shipping costs not the product cost. Payment terms
have nothing to do with shipping
costs but refer to how the invoice should be paid regardless of whether shipping costs
are on the invoice. I've have
seen where shipping costs were invoiced separately but that is uncommon.
Depending on whether you are the buyer or the vendor, your purchasing or sales
department will know the specifics of
how freight is handled for a given partner.
Jim Divoky
----- Original Message -----
From: "Linda Leckrone" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, May 31, 2001 2:45 PM
Subject: Automotive/Heavy Truck FOB usage question(s)
> Hello EDI-L
>
> I have a question that I really should know, but I seem to be a bit confused.
> I'm working on some mapping and ran into some issues with the FOB segment. Now,
> generally this isn't a problem - the FOB01 is a two character code and at the
> header level... that's usually enough information. However, this time the
> questions came in - what is it FOR? What does it MEAN? And it occurs to me
> that I really don't know. So here's my situation:
>
> In an incoming order (830, 862, 850) the FOB01 is defined as 'Shipment Method of
> Payment' and is generally 'CC' = Collect, 'PP' = Prepaid or 'DF' = Defined by
> buyer and seller, or something similar. However, what, exactly is this refering
> to? If I get an FOB01 with 'PP' am I expecting that the customer to pay before
> I ship the truck full of stuff? And what about information such as 'payment due
> 30 days from date of invoice'? Is that at all related to this FOB segment? I
> realize that second information is generally on an invoice, but is there any
> kind of relationship between the terms of payment and the FOB01? Can somebody
> please clarify this? I am currently working with Paccar/Peterbilt/Kenworth, but
> have seen the FOB in other places, just never paid attention before. Please
> help! Thanks.
>
> Linda Leckrone
> EDI Development
> Brain North America
> http://www.brainna.com
>
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