How do I configure Freight Terms? What do Freight Terms Mean?
How Are Freight Terms Used?
Freight terms display on a customer receipt. They define the liability relationship for the customer and the seller between purchase and delivery.
How Are Freight Terms Created?
- From the Configuration tab, select Freight Terms.
- Create a new freight term by clicking New.
- Fill the Row that appears in the grid with a Code & Description.
- Choose whether to enable or disable Apply Freight Edits?, Predefined, and Base+Freight.
- Click Save and Close.
Your new freight term will be available to assign to trading partners.
How do I Delete a Freight Term?
- From the Configuration tab, select Freight Terms.
- Select the row that contains the Freight Term you wish to delete.
- Click Delete.
- Save and Close.
Where Are Freight Terms Assigned?
- Freight Terms can be assigned to Trading Partners. Access existing Trading Partners from Company > Find > Trading Partners. Click on the partner you would like to modify.
- Freght Terms can also be assigned to a New Trading Partner. Create a New Trading Partner from Company > Start a Task > Trading Partners.
What are common definitions for Freight Terms used by Envio customers?
- Delivered - seller assumes risk of damage during transport -- produce must meet specific grade at destination if so stated.
- "U.S. No. 1 grapes delivered New York City" must be U.S. No. 1 on arrival in New York City.
- FOB (Free On Board) - at shipping point (e.g. “FOB Delano, California”) - buyer has risk of damage during transit -- buyer has right of rejection -- suitable shipping condition warranty applies.
- FOBA (Free On Board Acceptance) at shipping point - buyer has risk of damages during transit - buyer accepts at shipping point -- no right of rejection -- suitable shipping condition warranty applies.
- FOBAF (Free On Board Acceptance Final) at shipping point - buyer has risk of damages during transit - buyer accepts at shipping point -- no right of rejection -- suitable shipping condition warranty does not apply - must be clear proof this term was agreed to by the buyer.
- Inspection Final – seller obtains inspection to show compliance with contract and buyer has no remedy against the seller – must be clear proof this term was agreed to by the buyer.
- California Inspection Final
- Purchase After Inspection – buyer has opportunity to inspect – no right of rejection – suitable shipping condition does not apply – must be clear proof this term was agreed by the buyer.
- Suitable Shipping Condition Warranty - seller liable for product arriving with abnormal deterioration if transportation normal (only applies to FOB and FOBA sales) – check good delivery tolerances on the PACA website to determine if there is abnormal deterioration.
- Open Price - price to be agreed upon sometime after shipment; if no agreement, buyer must prove reasonable price based on market reports and an accounting.
- Price Arrival - price to be agreed upon after arrival; if no agreement, buyer must prove reasonable price based on market reports and an accounting.
- PAS (Price After Sale) - price to be agreed upon after arrival and sale; if no agreement, buyer must prove reasonable price based on market reports and an accounting.
Common PACA Payment Terms
- Sale - 10 days after acceptance
- Consignment - 20 days after acceptance
- To Grower's by Grower's Agents - 30 days after acceptance
- Terms can be changed by written agreement before the transaction. But see Payment Terms under The PACA Trust for what happens if terms are increased beyond 30 days from delivery.