Freight and duty belong inside the unit cost
A product’s cost is not the factory price. Freight, duty, insurance and inland transport are allocated across the products in the shipment — freight by volume, duty by goods value — and the result is previewed before it reaches the product record.
Allocating evenly is the same as allocating wrongly
Splitting freight equally across five products charges the small one for space the bulky one used. The margin that comes out of that is fiction.
Each cost line gets the basis that matches it, and the basis is visible next to the line rather than buried in a formula.
Profit is calculated with the real cost afterwards
Once the allocation is approved, the product record carries the landed cost — so margins, price decisions and the P&L all use the number you actually paid.
Frequently asked questions
What is landed cost?
The cost of one unit by the time it reaches your warehouse: factory price plus its share of freight, duty, insurance and inland transport.
Can I change the allocation basis?
Yes, per cost line. Freight is usually allocated by volume, duty and insurance by goods value.