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On an invoice, FOB (free on board) refers to the site from which you usually ship your invoiced products. On a purchase order, you can use the FOB field to indicate to the vendor how you want your order to be shipped.

QuickBooks normally leaves this field blank. It does not enter the FOB site you specified in the Sales & Customers Preferences window.

In traditional accounting terms, FOB refers to terms between the buyer and seller regarding transportation costs and the moment at which the buyer assumes ownership of an item. An item placed without charge to the buyer on board a carrier at the point of shipment is "free on board."

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