Discuss why computerized accounting is important to any company that is involved in e-commerce. Select a well-known company and explain two ways that computerized accounting helps this business to be successful from an e-commerce standpoint.

The seller is responsible for the goods to be cleared for export. The term is applicable for maritime and inland waterway transport only but NOT for multi-modal sea transport in containers. “FOB Origin” refers to the legal fact that the buyer assumes title of the goods the moment the freight carrier picks up and signs the bill of lading at the origin pick-up location. It is the point in the supply chain where the seller relinquishes ownership, and the buyer accepts ownership of products purchased in a specific transaction.

FOB Price: What is the Difference Between FOB and other sea shipping incoterms?

This delay in recognizing the expense and changes in the buyer’s inventory affects the net income. FOB destination, or FOB destination point, means that the seller is at risk to pay for the damage until the buyer receives the products.

• It doesn’t include any obligation on behalf of the seller to load goods onto a carrier or even to provide them with transport over public roads.
• This means that the seller is the responsible party and must undertake the cost of any damages or extra fees incurred during the delivery process.
• With that in mind, it is very important to have proper documentation, especially in regards to FOB terms.
• The shipper accepts responsibility for all freight charges and risks.
• In this case, the vendor with most refused shipments set “F.O.B.

With this new awareness, the distributor rectified the problem by adjusting the purchase terms for future orders. Fortunately for this distributor the vendor had agreed to accept the goods back into inventory, even though they had no legal obligation. https://quickbooks-payroll.org/ Explain the terms accumulate, assign, allocate, and adjust as they apply to job order costing. Describe two main concentrations of normative accounting theory. Describe the major constraint inherent in the presentation of accounting information.

FOB Terms: FOB Origin, Freight Prepaid

FOB shipping point is usually paid for by the buyer, while FOB destination is usually paid for by the seller. Anna Misiuro is an editor and content creator with Synder who writes about the intricacies of online marketing and e-commerce. Once a newbie herself, she knows the importance of understanding the basic concepts and learning from best practices fob shipping point when you’re just starting in the world of e-commerce. She holds a degree in Linguistics and her interests span public relations, advertising, sales, marketing, psychology and health. ‘FOB Destination, Freight Prepaid’ is the opposite of ‘FOB Destination, Freight Collect’ and is used to indicate that the seller assumes the cost of freight.

“Freight prepaid” refers to the legal fact that the seller is responsible for all freight charges. “Freight Prepaid” refers to the legal fact that the seller accepts responsibility for all freight charges and freight claims exposure. The key to successful business operations is effective inventory management. Discuss how this affects the financial statements of a business as a whole.