← Practical guides

Allocate freight across SKUs without losing a cent

A worked shipment example comparing value, quantity and weight allocation, with line totals that reconcile to the original cost.

Start with one shipment and one currency

Suppose a shipment contains 10 units of item A at 5.00 each and 20 units of item B at 10.00 each. The purchase subtotals are 50.00 and 200.00. Freight costs another 30.00. All amounts below use the same currency with two decimal places.

Allocate by purchase value

Item A represents 50 / 250 = 20% of the purchase value, so it receives 6.00 of freight. Item B receives 24.00. The shared cost is distributed once across the shipment.

Purchase-value allocation of 30.00 freight
ItemUnitsPurchase totalFreightLanded totalPer unit
A1050.006.0056.005.60
B20200.0024.00224.0011.20

The landed totals reconcile: 56.00 + 224.00 = 250.00 + 30.00 = 280.00. By quantity instead, A receives 10.00 of freight and B receives 20.00. Neither allocation basis is universally correct; choose the one that fits the cost you are allocating.

Handle the smallest currency unit deliberately

Splitting 0.01 equally across three items cannot give every item exactly one third of a cent. The tool allocates whole minor units, distributes the remainder deterministically and keeps the total unchanged. Ties follow the original CSV order. Displayed average unit costs can have extra decimals; the exact line totals are the reconciliation basis.

Know what the numbers include

Use the same weight unit for every row when allocating by weight. Enter shared charges only once. If a purchase price already includes freight or a fee, do not add it again. Convert foreign amounts yourself before combining them: changing the currency selector changes precision and labels, not exchange rates.

This is a cost-allocation model. It does not determine customs rates, tax treatment or which fees belong in accounting inventory value. You choose and confirm the costs. Review the resulting unit costs before using them in the bundle profit calculator.

Allocate shipment costs →