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What Does FOB Point Mean? An Explanation of the Shipping Term Helping Businesses Ship Smarter

The choice between F.O.B. shipping point and destination can impact how revenue is recognized in accounting and may have tax implications. For instance, under F.O.B. shipping point, sellers can recognize revenue once the goods are shipped, potentially benefiting cash flow. Buyers under F.O.B. destination might defer payment until receipt of goods, which can also impact […]