Allocate shared freight across bulky and compact toy SKUs by the driver of each charge, not automatically by unit count. Assign SKU-specific charges directly, use packed volume for space-driven charges and gross weight for mass-driven charges, then reconcile every allocation to the invoice. A quantity split is reasonable for similar items, but it can conceal a bulky toy’s greater use of shipping space. The result should support SKU margin review without changing the shipment’s total cost.
For each shared charge: allocated amount = charge total × the SKU’s allocation base ÷ the combined allocation base of all eligible SKUs. Divide the allocated amount by that SKU’s shipped units to obtain its shared charge per unit. Keep every input in consistent units and currencies. TariffCatalog calculator
What shipment inputs are needed for the worked comparison?
| Shipped selling units | Compact line A: 100; bulky line B: 100; shipment total: 200. |
|---|---|
| Total packed volume | A: 0.20 m³; B: 0.80 m³; shipment total: 1.00 m³. These are line totals, not volume per unit. |
| Total goods value | A: quotation on request; B: quotation on request; shipment total: quotation on request |
| Direct logistics charges | A: quotation on request; B: quotation on request; total: quotation on request Keep these outside the shared pool. |
| Shared logistics charge | quotation on request allocated once using the selected basis. |
| Weight sensitivity condition | A and B have equal total shipment gross weight, so each receives 50% under the conditional weight method. |
How do quantity, volume, weight and value change each SKU’s share?
| Quantity allocation | A: 100 ÷ 200 = 50%; quotation on request allocated; quotation on request per unit. B: 50%; quotation on request allocated; quotation on request per unit. Total: quotation on request |
|---|---|
| Packed-volume allocation | A: 0.20 ÷ 1.00 = 20%; quotation on request allocated; quotation on request per unit. B: 80%; quotation on request allocated; quotation on request per unit. Total: quotation on request |
| Gross-weight allocation—equal-weight condition | A: 50%; quotation on request allocated; quotation on request per unit. B: 50%; quotation on request allocated; quotation on request per unit. Total: quotation on request Unequal actual weights would produce a different split. |
| Goods-value allocation | A: quotation on request ÷ quotation on request = 66.67%; quotation on request allocated; quotation on request per unit. B: 33.33%; quotation on request allocated; quotation on request per unit. Total: quotation on request; percentages displayed rounded. |
Which allocation basis should each charge line use?
| Charge attributable to one SKU | Treatment: assign directly to that SKU. Keep: invoice line or service record identifying the affected goods. Exclude the amount from every shared pool. |
|---|---|
| Space-driven freight | Recommended basis: total packed m³ by SKU when volume reflects the billed service. Keep: packing list, outer-carton dimensions, carton counts and the provider’s billing basis. Use shipping dimensions, not display or assembled toy dimensions. |
| Mass-driven freight | Recommended basis: shipment gross weight by SKU when mass drives the charge. Keep: gross-weight records and the provider’s calculation. Do not substitute net product weight. |
| Chargeable-weight freight | Recommended basis: each SKU’s attributable chargeable weight under the provider’s calculation. Keep: actual and dimensional-weight calculations. Do not assume physical weight alone explains a dimensional bill. |
| Value-based insurance or service fee | Recommended basis: the value used to calculate that charge. Keep: policy or fee calculation and supporting goods values. A high purchase price alone is not a reason to allocate physical freight by value. |
| Per-carton or per-unit handling | Recommended basis: cartons or units actually handled, matching the invoice. Keep: handling count and billing unit. Selling units and cartons are not interchangeable. |
| Flat shipment administration charge | Recommended basis: a documented internal policy, such as an equal share per eligible SKU line. Keep: the policy and rationale. This is a management convention, not a claim that each SKU caused an equal cost. |
What does a completed, reconciled allocation worksheet look like?
| Shared charge: quotation on request; basis: packed volume | A: quotation on request × 0.20 ÷ 1.00 = quotation on request B: quotation on request × 0.80 ÷ 1.00 = quotation on request Allocated total: quotation on request; difference: quotation on request |
|---|---|
| Direct charge assigned to A: quotation on request | A: quotation on request B: quotation on request Assigned total: quotation on request; difference: quotation on request |
| Direct charge assigned to B: quotation on request | A: quotation on request B: quotation on request Assigned total: quotation on request; difference: quotation on request |
| Total logistics cost by SKU | A: quotation on request + quotation on request = quotation on request B: quotation on request + quotation on request = quotation on request |
| Logistics cost per shipped unit | A: quotation on request ÷ 100 = quotation on request B: quotation on request ÷ 100 = quotation on request |
| Invoice-total reconciliation | Illustrative logistics control total: quotation on request Assigned and allocated total: quotation on request + quotation on request = quotation on request Unallocated or duplicated amount: quotation on request |
| Optional goods-plus-logistics margin input | A: (quotation on request + quotation on request) ÷ 100 = quotation on request per unit. B: (quotation on request + quotation on request) ÷ 100 = quotation on request per unit. Combined goods-plus-logistics total: quotation on request |
What should buyers record before using the result for pricing?
Record the shipment scope, charge evidence, allocation inputs and reconciliation before treating the per-SKU result as an approved margin input.
Use quantities actually shipped in the charged movement, not the entire purchase order. If quantities received differ, record that difference separately rather than silently changing the divisor.
Save the supplier invoice, carrier invoice, packing list and allocation worksheet together. Reconcile each charge line as well as the overall total; a correct grand total can still hide an incorrect split between SKUs. TariffCatalog allocation guidance
| Worksheet identity and scope | Record shipment reference, worksheet revision, invoice references, currency, service scope, eligible SKU lines and whether each amount is estimated or invoiced. |
|---|---|
| Calculation record | For every charge, retain direct/shared classification, selected basis, input totals, source document, allocated amounts, unit divisor and reconciliation difference. |
| Supplier confirmation questions | What are the final outer-carton dimensions and carton counts for each SKU? What is each carton’s gross weight? How many selling units are packed in each carton, including partial cartons? Do these figures match this shipment’s packing revision? |
| Review and closure | Record the responsible reviewer and approval date, any conditions restricting use, the owner of each follow-up and its closure date. Retain the prior revision when confirmed inputs replace estimates. |
Freight Allocation FAQs
What should I do if packed volume is not yet confirmed?
Request final outer-carton dimensions and carton counts by SKU. Calculate total packed m³ from those shipping measurements, converting dimensions consistently. Do not substitute assembled toy dimensions. If a buying decision cannot wait, label the allocation provisional, state the temporary basis and recalculate before approving the pricing input.
How should rounding differences be handled?
Calculate allocations at full precision, then round currency amounts for posting. Assign any residual cent using a documented rule, such as the largest fractional remainder, and retain the adjustment. Divide the final SKU totals by units afterward; multiplying rounded per-unit figures back by quantity may not reproduce the invoice.
Does changing the allocation method reduce freight spend?
No. Changing the basis redistributes the same bill between SKUs. In the comparison, moving from value to volume shifts quotation on request of the shared charge from A to B without reducing cash cost. Use that difference to review product economics, not to report freight savings. This worksheet is a management budgeting tool; it does not determine customs value or inventory accounting treatment. Suaid Global worked example