Shipping costs are allocated into per-unit cost

Short answer

Product cost is more than the factory price: freight, duty, insurance and inland transport all end up inside that unit. Cirometre allocates a shipment’s cost lines across the products inside it and produces the real cost per unit. The allocation is previewed before it is written; you approve the figure.

global.cirometre.com/inventory/shipments
PreviewThe allocation has not been written yet. If you approve it, these costs are applied to the product records and profit is calculated with them. Write allocation
ShipmentSHP-2026-0188
Total cost$4,860.00
Allocation basisVolume
Products4
Cost linesfreight, duty, insurance, inland transport
Cost Allocation basis Amount
Ocean freightVolume$3,180.00
Customs dutyGoods value$1,014.00
InsuranceGoods value$186.00
Inland transport (port → warehouse)Volume$480.00
4 lines$4,860.00
Landed cost per unitpreview
ExcelCSV
Product Units Factory Share Cost share Landed cost
Pour Over Coffee Kettle, 1.0 LB0C4RT91KD
400$7.1046.2%$2,245.32$12.71
Lumbar Support CushionB0DK6P35YA
300$8.4028.1%$1,365.66$12.95
Bamboo Utensil Set, 7 PcsB0D7MQ2XLV
350$6.2017.4%$845.64$8.62
Silicone Baking Mat, 2 PackB0B9FH40TS
150$4.908.3%$403.38$7.59
4 products · 1,200 units1,200100%$4,860.00$11.45
Cost lines and the per-unit allocation, shown as a preview before anything is written.

Charging freight to one product distorts profit

If a container holds five products, splitting the freight evenly is wrong: the bulky product took most of the space. Charging it all to one product is worse — that product looks unprofitable and the others look better than they are.

Each cost line gets its own basis: freight and inland transport by volume, duty and insurance by goods value. The basis is visible next to the line, not hidden in a formula.

Nothing is written until you approve it

The allocation is shown as a preview: which product took what share, what that adds per unit and what the landed cost becomes.

Only when you approve does it reach the product records — and from then on the profit calculation uses that figure.

Frequently asked questions

What is landed cost?

The real cost of one unit by the time it reaches the warehouse: factory price plus its share of freight, duty, insurance and inland transport.

How is the allocation split?

Per cost line. Freight and inland transport are allocated by volume, duty and insurance by goods value. The basis is shown next to each line.

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