F.O.B. Freight Allowed

F.O.B. Freight Allowed

An agreement between a seller and a buyer indicating that the seller has fulfilled his/her obligation to deliver a good when he/she has transferred it to the point from which it is to be transported to the buyer. The seller pays for transportation indirectly. That is, the seller quotes the buyer a cost for transportation, which the buyer pays. The seller then deducts this amount from the invoice.