i need to provide figures of earnings on fob basis for f.y. 09-10.
to arrived this value i ve taken total exports bill realised during the period 09-10 & i ve deducted foreign freight & insurance from the total exports bill realised during the yr 09-10.
is this correct method? if not pls let me know what is the right method or formula for the same.
Free on board (FOB). This pricing term indicates that the cost of the goods, including all transportation and insurance costs from the manufacturer to the port of departure, as well as the costs of loading the vessel are readfiled in the quoted price. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
"FOB Price does not include Shipping freight and Insurance charges"
but still one doubt is there, which export sales bill to consider for calculation, all those raised in the f.y. 09-10 or all those which are actually realized in the f.y. 09-10 irrespective of their bill date.
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