How to work with FOB

To work with FOB

On an invoice, FOB (which stands for "free on board") refers to the site from which you usually ship your invoiced products. On a purchase order, you can use the FOB field to indicate to the vendor how you want your order to be shipped.

QuickBooks normally leaves this field blank. It does not enter the FOB site you specified in the Sales & Customers Preferences window.

In traditional accounting terms, FOB refers to terms between the buyer and seller regarding transportation costs and the moment at which the buyer assumes ownership of an item. An item placed without charge to the buyer on board a carrier at the point of shipment is "free on board."

• First of all, you have to enter to the purchase orders dialog box.

• After that you will see FOB at the right hand site.