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Sumit Pandit-3

Question regarding FOB cost

Hello Devs,

I need suggestion regarding to the FOB cost.
For this can I add a new entry in CostComponentType entity ?

Thanks in advance
Sumit Pandit

awdesh parihar

Re: Question regarding FOB cost

Hello Sumit

Freight-on-Board (FOB) cost structures involve the production cost plus any
transport costs to the customers .
The production cost is fix and transport cost varies depending upon the
distance of the standard route .
I think you can use the entry EST_STD_ROUTE_COST (Estimated Standard
Route (fixed asset usage) Cost) of entity
CostComponentType .

--Thanks & Regards
Awdesh Parihar

On Sat, Dec 6, 2008 at 11:37 AM, Sumit Pandit
<[hidden email]>wrote:

>
>
> Hello Devs,
>
> I need suggestion regarding to the FOB cost.
> For this can I add a new entry in CostComponentType entity ?
>
> Thanks in advance
> Sumit Pandit
>
>

--
--
Awdesh Parihar

Sumit Pandit-3

Re: Question regarding FOB cost

In reply to this post by Sumit Pandit-3

Thanks Awdesh for the reply.

You are 100% correct that FOB cost = Production cost + Transportation cost.
And I appreciate your efforts, But sorry to say that I am not agree.
As per your suggestion to use EST_STD_ROUTE_COST, it is dedicated for route /transportation cost only. we can't include production cost over here. That's why I was in favor to add new entry in same Entity.

Thanks And Regards
Sumit Pandit

----- Original Message -----
From: "awdesh parihar" <[hidden email]>
To: [hidden email]
Sent: Saturday, December 6, 2008 2:28:00 PM GMT +05:30 Chennai, Kolkata, Mumbai, New Delhi
Subject: Re: Question regarding FOB cost

Hello Sumit

Freight-on-Board (FOB) cost structures involve the production cost plus any
transport costs to the customers .
The production cost is fix and transport cost varies depending upon the
distance of the standard route .
I think you can use the entry EST_STD_ROUTE_COST (Estimated Standard
Route (fixed asset usage) Cost) of entity
CostComponentType .

--Thanks & Regards
Awdesh Parihar

On Sat, Dec 6, 2008 at 11:37 AM, Sumit Pandit
<[hidden email]>wrote:

>
>
> Hello Devs,
>
> I need suggestion regarding to the FOB cost.
> For this can I add a new entry in CostComponentType entity ?
>
> Thanks in advance
> Sumit Pandit
>
>

--
--
Awdesh Parihar

BJ Freeman

Re: Question regarding FOB cost

In reply to this post by Sumit Pandit-3

My understanding of FOB is the shipping cost are the responsibility of
the buyer, from the shippers dock.
I checked a couple of definition from google and they bare this out.
so I would think these would have more todo with route segments.

Sumit Pandit sent the following on 12/5/2008 10:07 PM:

>
> Hello Devs,
>
> I need suggestion regarding to the FOB cost.
> For this can I add a new entry in CostComponentType entity ?
>
> Thanks in advance
> Sumit Pandit
>
>

Jacques Le Roux

Re: Question regarding FOB cost

Administrator

Isn'it quite clear from here (1s link in Google I found on "FOB cost") ?
http://people.hofstra.edu/geotrans/eng/ch2en/conc2en/fobcif.html

Jacques

From: "BJ Freeman" <[hidden email]>

> My understanding of FOB is the shipping cost are the responsibility of
> the buyer, from the shippers dock.
> I checked a couple of definition from google and they bare this out.
> so I would think these would have more todo with route segments.
>
> Sumit Pandit sent the following on 12/5/2008 10:07 PM:
>>
>> Hello Devs,
>>
>> I need suggestion regarding to the FOB cost.
>> For this can I add a new entry in CostComponentType entity ?
>>
>> Thanks in advance
>> Sumit Pandit
>>
>>
>

BJ Freeman

Re: Question regarding FOB cost

guess it comes to interpretation
CIF:
Cost, insurance and freight, whereby the quoted price for physical
material includes all costs incurred in shipping the metal to the
customer’s location including insurance.

FOB / FOT
Free on board/Free on truck, whereby the quoted price for physical
material includes all costs incurred in getting the metal to and loaded
onto the means of transport.

Free On Board. A shipping term which indicates that the supplier pays
the shipping costs (and usually also the insurance costs) from the point
of manufacture to a specified destination, at which point the buyer
takes responsibility.

Free On Board (FOB)

term indicating delivery will be made on board or into a carrier by the
shipper without charge. The abbreviation FOB is followed by a shipping
point or destination. The invoice price includes delivery at seller's
expense and seller's risk to the specified location. For example, "FOB
our warehouse in Duluth, Minnesota," means to a buyer requesting New
York City delivery that the seller who might have its headquarters and
billing office in Chicago, will pay shipping costs from Duluth to New
York. Title usually passes from seller to buyer at the FOB point.

Jacques Le Roux sent the following on 12/7/2008 11:30 AM:

> Isn'it quite clear from here (1s link in Google I found on "FOB cost") ?
> http://people.hofstra.edu/geotrans/eng/ch2en/conc2en/fobcif.html
>
> Jacques
>
> From: "BJ Freeman" <[hidden email]>
>> My understanding of FOB is the shipping cost are the responsibility of
>> the buyer, from the shippers dock.
>> I checked a couple of definition from google and they bare this out.
>> so I would think these would have more todo with route segments.
>>
>> Sumit Pandit sent the following on 12/5/2008 10:07 PM:
>>>
>>> Hello Devs,
>>> I need suggestion regarding to the FOB cost. For this can I add a new
>>> entry in CostComponentType entity ?
>>> Thanks in advance Sumit Pandit
>>>
>>
>
>

Sumit Pandit-3

Re: Question regarding FOB cost

In reply to this post by Sumit Pandit-3

Thanks Jacques and BJ for your valuable suggestions.
From definition given by you I got that

FOB is not a single cost, it is a collective cost. Which includes :
FOB = Production Cost + transportation cost + insurance cost
So we can say that FOB is to total cost to the Manufacturer.

So according to this concept now we doesn't need to add a new entry in the entity " CostComponentType". When ever we need to represent FOB cost we just add production cost, transportation cost and insurance cost of product and represent it.

Let me correct if I am wrong.

Thanks And Regards
Sumit Pandit.

----- Original Message -----
From: "BJ Freeman" <[hidden email]>
To: [hidden email]
Sent: Monday, December 8, 2008 1:17:06 AM GMT +05:30 Chennai, Kolkata, Mumbai, New Delhi
Subject: Re: Question regarding FOB cost

guess it comes to interpretation
CIF:
Cost, insurance and freight, whereby the quoted price for physical
material includes all costs incurred in shipping the metal to the
customer’s location including insurance.

FOB / FOT
Free on board/Free on truck, whereby the quoted price for physical
material includes all costs incurred in getting the metal to and loaded
onto the means of transport.

Free On Board. A shipping term which indicates that the supplier pays
the shipping costs (and usually also the insurance costs) from the point
of manufacture to a specified destination, at which point the buyer
takes responsibility.

Free On Board (FOB)

term indicating delivery will be made on board or into a carrier by the
shipper without charge. The abbreviation FOB is followed by a shipping
point or destination. The invoice price includes delivery at seller's
expense and seller's risk to the specified location. For example, "FOB
our warehouse in Duluth, Minnesota," means to a buyer requesting New
York City delivery that the seller who might have its headquarters and
billing office in Chicago, will pay shipping costs from Duluth to New
York. Title usually passes from seller to buyer at the FOB point.

Jacques Le Roux sent the following on 12/7/2008 11:30 AM:

BJ Freeman

Re: Question regarding FOB cost

it can also include the Cost of product your selling.
so you buy a product from a wholesaler instead of manufacture.
FOB = Product price from suppler +markup +Transportation+insurance cost.

one change to yours
FOB = Production Cost + markup+ transportation cost + insurance cost

FOB calculations would need a destination for transportation cost and if
insurance is wanted

So I would think FOB would be part of the Shipment type in the
(purchase) order header

This would also then have a shipment section that the customer would pay
like in the example. not sure this part needs to be in the OTTB version.
any way I believe all the entities are there for this.

Sumit Pandit sent the following on 12/7/2008 8:25 PM:

> Thanks Jacques and BJ for your valuable suggestions.
>>From definition given by you I got that
>
> FOB is not a single cost, it is a collective cost. Which includes :
> FOB = Production Cost + transportation cost + insurance cost
> So we can say that FOB is to total cost to the Manufacturer.
>
> So according to this concept now we doesn't need to add a new entry in the entity " CostComponentType". When ever we need to represent FOB cost we just add production cost, transportation cost and insurance cost of product and represent it.
>
>
> Let me correct if I am wrong.
>
> Thanks And Regards
> Sumit Pandit.
>
>
>
> ----- Original Message -----
> From: "BJ Freeman" <[hidden email]>
> To: [hidden email]
> Sent: Monday, December 8, 2008 1:17:06 AM GMT +05:30 Chennai, Kolkata, Mumbai, New Delhi
> Subject: Re: Question regarding FOB cost
>
> guess it comes to interpretation
> CIF:
> Cost, insurance and freight, whereby the quoted price for physical
> material includes all costs incurred in shipping the metal to the
> customer’s location including insurance.
>
> FOB / FOT
> Free on board/Free on truck, whereby the quoted price for physical
> material includes all costs incurred in getting the metal to and loaded
> onto the means of transport.
>
> Free On Board. A shipping term which indicates that the supplier pays
> the shipping costs (and usually also the insurance costs) from the point
> of manufacture to a specified destination, at which point the buyer
> takes responsibility.
>
> Free On Board (FOB)
>
> term indicating delivery will be made on board or into a carrier by the
> shipper without charge. The abbreviation FOB is followed by a shipping
> point or destination. The invoice price includes delivery at seller's
> expense and seller's risk to the specified location. For example, "FOB
> our warehouse in Duluth, Minnesota," means to a buyer requesting New
> York City delivery that the seller who might have its headquarters and
> billing office in Chicago, will pay shipping costs from Duluth to New
> York. Title usually passes from seller to buyer at the FOB point.
>
>
>
> Jacques Le Roux sent the following on 12/7/2008 11:30 AM:
>> Isn'it quite clear from here (1s link in Google I found on "FOB cost") ?
>> http://people.hofstra.edu/geotrans/eng/ch2en/conc2en/fobcif.html
>>
>> Jacques
>>
>> From: "BJ Freeman" <[hidden email]>
>>> My understanding of FOB is the shipping cost are the responsibility of
>>> the buyer, from the shippers dock.
>>> I checked a couple of definition from google and they bare this out.
>>> so I would think these would have more todo with route segments.
>>>
>>> Sumit Pandit sent the following on 12/5/2008 10:07 PM:
>>>> Hello Devs,
>>>> I need suggestion regarding to the FOB cost. For this can I add a new
>>>> entry in CostComponentType entity ?
>>>> Thanks in advance Sumit Pandit
>>>>
>>
>
>

Sumit Pandit-3

Re: Question regarding FOB cost

Okay, Got it.

Thank you very much BJ for your help.

----- Original Message -----
From: "BJ Freeman" <[hidden email]>
To: [hidden email]
Sent: Monday, December 8, 2008 10:45:45 AM GMT +05:30 Chennai, Kolkata, Mumbai, New Delhi
Subject: Re: Question regarding FOB cost

it can also include the Cost of product your selling.
so you buy a product from a wholesaler instead of manufacture.
FOB = Product price from suppler +markup +Transportation+insurance cost.

one change to yours
FOB = Production Cost + markup+ transportation cost + insurance cost

FOB calculations would need a destination for transportation cost and if
insurance is wanted

So I would think FOB would be part of the Shipment type in the
(purchase) order header

This would also then have a shipment section that the customer would pay
like in the example. not sure this part needs to be in the OTTB version.
any way I believe all the entities are there for this.

Sumit Pandit sent the following on 12/7/2008 8:25 PM:

Mark Grennan

Re: Question regarding FOB cost

In reply to this post by Sumit Pandit-3

Hello everyone.

The company I worked for Crossroads Wireless closed last Tuesday without notice. I'd like to thank each of you for the knowledge you departed.

If any of you need any assistance or some one to to physical system access in the Oklahoma City area please contact me at [hidden email].

Thanks again.

Mark Grennan
Data Center Manager
Crossroads Wireless
5 North McCormick St.
Oklahoma City, OK 73127
Desk: 405 694-2100 x3119
Cell: 405 343-9332

----- Original Message -----
From: "BJ Freeman" <[hidden email]>
To: [hidden email]
Sent: Sunday, December 7, 2008 11:15:45 PM GMT -06:00 US/Canada Central
Subject: Re: Question regarding FOB cost

it can also include the Cost of product your selling.
so you buy a product from a wholesaler instead of manufacture.
FOB = Product price from suppler +markup +Transportation+insurance cost.

one change to yours
FOB = Production Cost + markup+ transportation cost + insurance cost

FOB calculations would need a destination for transportation cost and if
insurance is wanted

So I would think FOB would be part of the Shipment type in the
(purchase) order header

This would also then have a shipment section that the customer would pay
like in the example. not sure this part needs to be in the OTTB version.
any way I believe all the entities are there for this.

Sumit Pandit sent the following on 12/7/2008 8:25 PM: