FOB (Freight On Board) defines the point of ownership of the product as it is transferred from one business to another. If the FOB is Origin, it usually means that the customer pays for freight and insurance from the seller’s dock, and assumes ownership at the time the product leaves the seller’s dock. FOB Destination would usually mean the seller is responsible for the product until it is accepted at the buyer’s dock.

FOB types are used in the Customer Shipping Information, Order Management, Packing List, Purchase Order Receiving, and Purchase Order.