- Home
- Bankruptcy and Bankruptcy Code
- Business Entities
- Departmental Operations
- Allowances
- Bad Debt Write offs; Bad Debt Losses
- Calculating Bad Debt Reserves
- Bad-Debt Write Offs; Uncollectible Accounts Receivable
- Computer Skills and the Credit and Collection Function
- Consignments; Consignment Sales
- Credit and Sales; Using Salespeople as Collectors; Team Based Account Management
- Credit Department and Organizational Structure
- Key Activities of the Credit Department; Role of the Credit and Collections Department
- Credit Department Goals and Objectives
- Credit Department Organization; Centralized vs. Decentralized Credit Operations
- Credit Policy Overview
- Divestitures
- Downsizing the Credit Department; Planning and Pitfalls; Outsourcing
- Economic Downturns; Recessions; Layoffs
- Electronic Data Interchange (EDI)
- Finding, Attracting, and Retaining the Best Employees
- Escalating A/R Problems to Management
- The Credit File; Keeping the Credit File Current
- Improving Inter-Departmental Relationships
- Lockbox; Bank Lockboxes; Improving Cash Flow
- Motivation and Performance
- UCC 1 Perfection by Filing
- Required Areas of Knowledge for a Credit Professional
- Impact of Bad Debt Write Offs; Bad Debt Losses
- Shipping Procedures
- Bill of Lading
- Bills of Lading (B/L)
- Freight Forwarder
- Packing List; Packing Slip; Shipping List
- Pre-Shipment Inspection
- Transit Insurance, Cargo Insurance, and the Risk of Loss or Damage in Transit
- Terms of Delivery / Shipment Terms
- FOB Terms
- Incoterms Do and Don'ts
- Shipping Marks, Labels, and Product Brands
- Improving the Effectiveness and Efficiency of the Credit Function
- Building Bridges Between Sales and Credit
- Dormant Accounts
- Training Collectors
- Customer Retention
- Working Proactively in Credit and Collections
- Goal Setting for the Credit Department
- Myths about Credit Management
- Credit Practices
- Collection Practices
- Financial Analysis
- Financing Methods
- International Credit
- Laws and Regulations
- Payment Methods
- Performance Measures
- Security Instruments
- Career Management, and Job Change
- Credit Website Tools
- Upcoming Educational Events
- Credit and Collections Tools and Tips
- Tips on Creating Better Emails
- Generating Effective Credit Correspondence
- Exporting
- Accounting
FOB Terms
The FOB point determines whether the buyer or the seller bears the risk of loss or damage in transit. For example, if your freight terms are FOB Destination, title passes to the buyer at the delivery point specified by the buyer. This means that the seller bears the risk of loss or damage in transit and must file claims when goods are lost or damaged in transit. Under FOB Origin terms, title passes at the seller’s shipping point. Under these terms, the buyer owns the goods while they are in transit and the buyer bears the risk of loss or damage in transit.
© 2011. Michael C. Dennis. All Rights Reserved. Michael is the author of "Credit and Collection Handbook."