Thanks Jacques and BJ for your valuable suggestions. >From definition given by you I got that
FOB is not a single cost, it is a collective cost. Which includes : FOB = Production Cost + transportation cost + insurance cost So we can say that FOB is to total cost to the Manufacturer. So according to this concept now we doesn't need to add a new entry in the entity " CostComponentType". When ever we need to represent FOB cost we just add production cost, transportation cost and insurance cost of product and represent it. Let me correct if I am wrong. Thanks And Regards Sumit Pandit. ----- Original Message ----- From: "BJ Freeman" <[EMAIL PROTECTED]> To: [email protected] Sent: Monday, December 8, 2008 1:17:06 AM GMT +05:30 Chennai, Kolkata, Mumbai, New Delhi Subject: Re: Question regarding FOB cost guess it comes to interpretation CIF: Cost, insurance and freight, whereby the quoted price for physical material includes all costs incurred in shipping the metal to the customer’s location including insurance. FOB / FOT Free on board/Free on truck, whereby the quoted price for physical material includes all costs incurred in getting the metal to and loaded onto the means of transport. Free On Board. A shipping term which indicates that the supplier pays the shipping costs (and usually also the insurance costs) from the point of manufacture to a specified destination, at which point the buyer takes responsibility. Free On Board (FOB) term indicating delivery will be made on board or into a carrier by the shipper without charge. The abbreviation FOB is followed by a shipping point or destination. The invoice price includes delivery at seller's expense and seller's risk to the specified location. For example, "FOB our warehouse in Duluth, Minnesota," means to a buyer requesting New York City delivery that the seller who might have its headquarters and billing office in Chicago, will pay shipping costs from Duluth to New York. Title usually passes from seller to buyer at the FOB point. Jacques Le Roux sent the following on 12/7/2008 11:30 AM: > Isn'it quite clear from here (1s link in Google I found on "FOB cost") ? > http://people.hofstra.edu/geotrans/eng/ch2en/conc2en/fobcif.html > > Jacques > > From: "BJ Freeman" <[EMAIL PROTECTED]> >> My understanding of FOB is the shipping cost are the responsibility of >> the buyer, from the shippers dock. >> I checked a couple of definition from google and they bare this out. >> so I would think these would have more todo with route segments. >> >> Sumit Pandit sent the following on 12/5/2008 10:07 PM: >>> >>> Hello Devs, >>> I need suggestion regarding to the FOB cost. For this can I add a new >>> entry in CostComponentType entity ? >>> Thanks in advance Sumit Pandit >>> >> > >
