It's not just the code values used in FOB01, it's the very meaning of "FOB"
and that of responsibility for freight charges which is often misunderstood.
"FOB" is an acronymn for "Free On Board." Technically, it means of "the
point at which title passes to the buyer."
The case in which this makes a difference is when a shipment is lost or
damaged in transit. If an item is sold "FOB shipping point" the consignee is
liable for the goods as soon as the shipper turns them over to the carrier -
i.e., the consignee must pay the shipper for the merchandise and settle any
loss or damage claims with the carrier . If the item is sold "FOB
Destination", the consignee is not oblgated to pay for the merchandise until
it is received (in good order).
These technicalities, of course, is often meaningless in The Real World, as
Real Customers simply do not pay until they receive their merchandise in
good order. (There *are* exceptions, but they are rare). The seller/shipper
ends
up totin' that barge to settle up with thecarrier. (Unless the seller wants to
upset the buyer, which does not happen too often). As far as "prepaid" and
"Collect" freight, this, too has a technical meaning: who actually pays the
carrier. If prepaid, the shipper pays; if collect, the consignee pays. BUT...
this does not mean who "ultimately" is paying the freight charge. The shipper
may prepay the freight as a convenience to the buyer, but add the freight
charges to the invoice. When I worked for a PT distributor, we received some
shipments "freight collect" (we wrote the check to the carrier), but the seller
gave us a *credit* on the invoice when the shipment was "freight allowed."
For creating ANSI/EDIFACT invoices or ASNs, the bottom line for code values
in the FOB or any other segment is, as always, "what is agreed between the
partners."
But in nearly twenty years of working with invoice and ASN documents for
dozens of companies, I've never seen anyone actually use those codes for
anything.
Michael C. Mattias
Tal Systems
Racine WI
[EMAIL PROTECTED]
> ----- 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:
> >
>> but is there any
> > kind of relationship between the terms of payment and the FOB01?
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