Free on Board Destination

From Knowledge base

“F.o.b. destination” means free on board at destination; i.e., the seller or consignor delivers the goods on seller’s or consignor’s conveyance at destination. Unless the contract provides otherwise, the seller or consignor is responsible for the cost of shipping and risk of loss. For use in the clause at 52.247-34, see the definition at 52.247-34(a).[1]


Accounting Treatment

Revenue cannot be recognized until the customer receives the property.


Other Important Considerations

Insurance, risk of loss, and shipping charges are incurred by the seller

References and Notes

  1. FAR 2.1