FOB stands for freight on board. FOB destination (vs origin) tells you who pays for shipping and when liability shifts. FOB destination means that the seller is paying all costs to ship the goods to the destination - in other words the selling price includes the costs, and there won't be an additional shipping charge. The seller is responsible for the goods until the buyer takes possession. Therefore the only entry will be the invoice for the goods, and it is only valid when the goods are received in good shape, i.e. no damage.