The quote becomes part of the purchase order that helps clarify the agreement between the department and the vendor. The department should require any shipping/freight terms to be reflected on the quote received from the vendor. A Quick Look at Shipping/Freight Terms FOB TermįOB Destination, freight prepaid and Add (costs to invoice) The University Office of Risk Management can provide transit insurance when necessary. Origin or Shipping Point, the department should arrange for appropriate insurance coverage for the purchased goods. The department assumes risk of damage during transit. Origin or Shipping Point means that the department usually pays all shipping/freight costs and legal ownership transfers to the department when the goods leave the vendor's warehouse. Therefore, the seller pays all shipping/freight costs and assumes risk of damage for the goods during transit.į.O.B.
Destination means that legal ownership of the good transfers when it reaches the department. It should be negotiated into all purchases whenever possible. Destination is the preferred shipping/freight method since it provides the most protection to the University. is commonly used when shipping goods to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to buyer.į.O.B. PO Shipping Terms - Urbana Campus Definitions
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