The second part of the freight term determines who shall pay the freight charges. Freight is usually prepaid by the vendor, but the vendor may absorb that cost or charge it back to the customer (University). You may see the second part of a freight term expressed in several ways, e.g., “Freight Prepaid,” “Freight Prepaid
http://www.maine.edu/pdf/UNDERSTANDINGFREIGHTTERMS.pdf
shipping terms, and the vendor accepts the order by shipping the goods, the University does not have to pay the freight even if the vendor has added it to the invoice . By shipping the goods, the vendor has accepted our terms. If a vendor is set up in our Financials system with freight terms specific to them,
http://www.maine.edu/pdf/UNDERSTANDINGFREIGHTTERMS.pdf
FOB DEFINITION | SHIPPING TERMS OF SALE FOB, Free On Board, is a transportation term that indicates that the price for goods includes delivery at the Seller’s expense to a specified point and no further. The FOB term is used with an identified physical location to determine 1) the responsibility and basis for payment of
http://www.dsi-tms.com/hs-fs/hub/1987/file-18496826-pdf/docs/fob_definition.pdf
freight charges, and 2) the point at which title for the shipment passes from Seller to Buyer. The FOB location terms, Origin and Destination, may be qualified by modifiers. determines the payment of the transportation charges. title of the goods or filing of claims.
http://www.dsi-tms.com/hs-fs/hub/1987/file-18496826-pdf/docs/fob_definition.pdf
Prepaid & Add means the shipper, or supplier, will prepay the freight and add the shipping cost to the quote or purchase order from the customer. The customer approves t … hese terms so the purchase order can be issued and approved without knowing in advance the exact shipping charges.
http://www.answers.com/Q/Does_freight_prepaid_and_freight_collect_mean_the_same_thing
SHIPPING DEFINITIONS. Freight Terms identify the party responsible for the payment of freight and are usually expressed as: prepaid or collect with the following nuances: prepaid to a stated location and collect beyond or. third party or pre-pay and add.
http://www.dsi-tms.com/hs-fs/hub/1987/file-18496826-pdf/docs/fob_definition.pdf
and Allowed,” “Freight Prepaid and Charged” or “Freight Prepaid and Added,” etc. In the University’s PeopleSoft Financials system, the words Charged (abbreviated CHRGD) and Allowed (abbreviated ALLWD) are used to express this part of the freight term. Charged (CHRGD) means that the vendor will put the freight charges on the invoice or a separate invoice will be sent to the University for the freight charges.
http://www.maine.edu/pdf/UNDERSTANDINGFREIGHTTERMS.pdf
fob definition | shipping terms of sale FOB, Free On Board, is a transportation term that indicates that the price for goods includes delivery at the Seller’s expense to a specified point and no further.
http://www.dsi-tms.com/hs-fs/hub/1987/file-18496826-pdf/docs/fob_definition.pdf
Prepaid means that the shipper owns the freight payment responsibility. Collect means that the consignee owns the freight payment responsibility. Prepaid/Collect Beyond means that the shipper or consignor owns the prepayment portion with the balance of the freight charge being the responsibility of the consignee.
http://www.dsi-tms.com/hs-fs/hub/1987/file-18496826-pdf/docs/fob_definition.pdf
prepaid or collect with the following nuances: prepaid to a stated location and collect beyond or third party or pre-pay and add. While there are other subtleties, these examples will suffice. Prepaid means that the shipper owns the freight payment responsibility. Collect means that the consignee owns the freight payment responsibility. Prepaid/Collect Beyond means that the shipper or consignor owns the prepayment portion with the. balance of the freight charge being the responsibility of the consignee.
http://www.dsi-tms.com/hs-fs/hub/1987/file-18496826-pdf/docs/fob_definition.pdf
what does prepaid freight mean
Prepaid means that the shipper owns the freight payment responsibility.