FOB Shipping Point Meaning | Accounting Share

Accounting glossary · Understand, connect, apply

FOB shipping point is a commonly used US shipping term under which transit responsibility generally passes to the buyer when goods are delivered to the carrier, subject to the contract and applicable law.

Example

A buyer may include qualifying goods in transit in inventory after shipment even though delivery has not yet occurred.

Remember the difference

Freight payment and transfer of control are related but not identical questions. Check the actual agreement and reporting requirements.

Browse the accounting glossary → · Follow a learning path

Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.

Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.

← Return to the accounting glossary