The required selection of the FOB (Freight on Board) Code during the creation on all iBuy requisitions was added with the S2P updates implemented on December 1.

It is University policy to not be charged shipping, but we know some vendors do. Based on your quote from the vendor it will indicate if they are planning to charge any freight, shipping, or handling, then based on the definitions of the FOB codes you will select the one that applies. If you do not have a quote and are unsure if the vendor will charge you shipping, and you’ve never ordered from the vendor prior to know if they historically charged shipping, you should select the one that is the best-educated guess.

FOB Code Options

1. Freight/Shipping charges should not be invoiced by the Supplier. FOB 31
2. Freight/Shipping charges are to be invoiced by the Supplier and allowed. FOB 30
3. Special Shipping instructions (include Ext Notes & applicable documentation/PO Clause) FOB 21

FOB Code Guidance

1. Freight/Shipping charges should not be invoiced by the Supplier. FOB 31
   • Use this option when you are not expecting the vendor to charge shipping. The invoice should not have a shipping fee. If shipping is on the invoice, then University Payables will notify you.
2. Freight/Shipping charges are to be invoiced by the Supplier and allowed. FOB 30
   • Use this option when you are expecting the vendor to charge shipping.
     • You may not know the exact amount, but you are willing to accept and pay whatever shipping rate is sent by the vendor on the invoice.
     • Your quote from the vendor includes shipping information.
     • From prior experience, you know that the vendor will be charging freight/shipping on the invoice.
   • It is not necessary to add a separate line on the requisition if the quote you receive from the vendor does include shipping/freight charges. The quote should be added in PDF format as an External Attachment.
   • There will not be an issue with processing the invoice if you have selected Freight/Shipping charges are to be invoiced by the Supplier and allowed. FOB 30 but the vendor did not include shipping/freight charges on the invoice as long as there was not a separate line detailing a shipping/freight charge added to the requisition.
   • If you opt to add a separate line on the requisition if the quote you receive from the vendor does include shipping/freight charges and the vendor has confirmed they will be itemizing it on the invoice for the same quoted amount, use Commodity Code selection of ‘88081 Shipping & Handling Fees’ on that line and the FOB Code selection should be ‘B) Freight/Shipping charges are to be invoiced by the Supplier and allowed. FOB 30’. The quote should be added in PDF format as an External Attachment. If the vendor submits an invoice with a different shipping/freight amount than what was entered on the PO, University Payables will notify you.
3. Special Shipping instructions (include Ext Notes & applicable documentation/PO Clause) FOB 21 
   • Note that FOB 30 and FOB 31 are the primary selections for shipping.
   • FOB 21 should be used to accommodate for departmental FEDEx or UPS Shipping accounts.
   • Any supporting notes and applicable documentation should be attached to the requisition in PDF format in the External Notes and Attachments section of the requisition for Purchasing review and to accompany the PO sent to the vendor.

FOB Code Selection for Catalog Generated Orders

Recommended FOB Code selections for catalog generated orders. Note these are subject to change.

Selecting the FOB Code

1. Click Proceed to Checkout on the draft cart.
2. Click the Edit Shipping Section (pencil) icon.
3. Select the appropriate option for your order from the FOB Code menu.
4. Click Save.
5. Complete the cart before clicking Place Order.