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Asked by: Lazar Borat
business and finance logisticsWhat is prepay add?
Last Updated: 1st May, 2020
Prepaid & add, often designated as PPD& add, is when the consignor or shipper, pays thefreight bill for the shipment it is moving for its customer, thencharges its customer after delivery. Prepaid and addinvoices are typically rolled up into the invoice the customerreceives for the goods it purchases.
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Besides, what is freight prepay add?
Freight Collect is a term that means thefreight will be paid by the person receiving the shipment.PPD & Add stands for prepaid and add. This meansthat the shipper pays the freight company then bills thecustomer the actual freight charge.
Beside above, who pays for freight collect? The original invoice includes the freight chargesinitially paid by the seller. FOB Destination, FreightCollect, and Allowed: The shipper adds the freight coststo the invoice, and the buyer pays the charges. The sellerassumes the responsibility for the cargo untildelivery.
Consequently, what is the difference between prepaid and prepaid and add?
Prepaid means that the shipper owns the freightpayment responsibility. Collect means that the consignee owns thefreight payment responsibility. Prepaid/Collect Beyond meansthat the shipper or consignor owns the prepayment portionwith the balance of the freight charge being the responsibility ofthe consignee.
What is the difference between FOB and delivered?
Free on Board – FOBDestination Conversely, with FOB destination, the title ofownership is transferred at the buyer's loading dock, post officebox, or office building. Once the goods are delivered to thebuyer's specified location, the title of ownership of the goodstransfers from the seller to the buyer.