Domestic Terms of Sale

Over the years, true understanding of domestic purchasing terms of sale and their implications have become blurred. Issues generally do not arise until there is a problem and then the parties to the transaction attempt to sort out their individual responsibilities. Taking time to understand the terms, will help you select the correct one for your transaction.

Since transportation costs are the second or third highest expense that a manufacturing company has beyond the cost of labor and raw materials, it makes sense to know how they are allocated. Even if you permit your vendor to pay the freight charges, you need to know the amount they paid. Be sure to identify freight costs separate from cost of goods.

Negotiating the most appropriate terms of sale will allow you to add value to your purchase. Choosing ProVision as your transportation service provider gives you the opportunity to select the best price / service value.

  • F.O.B. Origin
    Freight Collect
Buyer pays freight charges
Buyer bears freight charges
Buyer owns goods in transit
Buyer files claims - if any
  • F.O.B. Origin
    Freight Prepaid
Seller pays freight charges
Seller bears freight charges
Buyer owns goods in transit
Buyer files claims - if any
  • F.O.B. Origin
    Freight Prepaid and Charged Back
Seller pays freight charges
Buyer bears freight charges
Buyer owns goods in transit
Buyer files claims - if any
  • F.O.B. Destination
    Freight Collect
Buyer pays freight charges
Buyer bears freight charges
Seller owns goods in transit
Seller files claims - if any
  • F.O.B. Destination
    Freight Prepaid
Seller pays freight charges
Seller bears freight charges
Seller owns goods in transit
Seller files claims - if any
  • F.O.B. Destination
    Freight Collect and Allowed
Buyer pays freight charges
Seller bears freight charges
Seller owns goods in transit
Seller files claims - if any