Accountants usually mark the charges as FOB Shipping Point or FOB Destination. FOB is "passenger on freight." The buyer has to pay the freight charge for the FOB shipping point. FOB destination means the seller must pay for the transportation of the goods. In other words, when you are transporting goods to your customers, the cost of making that delivery is an expense that comes as a debit from your account. This is considered sales costs and is known as freight out. When you make a purchase and the supplier bills you for shipping, it is referred to as freight-in. This debit comes from the "Sales-Freight Expenses" account.