Okay, Got it. 

Thank you very much BJ for your help. 




----- Original Message ----- 
From: "BJ Freeman" <[EMAIL PROTECTED]> 
To: [email protected] 
Sent: Monday, December 8, 2008 10:45:45 AM GMT +05:30 Chennai, Kolkata, Mumbai, 
New Delhi 
Subject: Re: Question regarding FOB cost 

it can also include the Cost of product your selling. 
so you buy a product from a wholesaler instead of manufacture. 
FOB = Product price from suppler +markup +Transportation+insurance cost. 

one change to yours 
FOB = Production Cost + markup+ transportation cost + insurance cost 

FOB calculations would need a destination for transportation cost and if 
insurance is wanted 

So I would think FOB would be part of the Shipment type in the 
(purchase) order header 

This would also then have a shipment section that the customer would pay 
like in the example. not sure this part needs to be in the OTTB version. 
any way I believe all the entities are there for this. 








Sumit Pandit sent the following on 12/7/2008 8:25 PM: 
> 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 
>>>> 
>> 
> 
> 

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