Know what your stock really cost to bring in.

Put it into a real working day

Example: two received goods lines have values of 300 and 700. Allocating 100 of additional cost by value assigns 30 to the first and 70 to the second. This illustration explains allocation; it is not tax advice or a live calculation.

Start with the purchase, not a guessed percentage

Gather the supplier bill and any separate freight or duty documentation. Identify the purchase and items those costs belong to. A blanket percentage can hide differences between a light high-value item and a bulky low-value one. The useful question is which recorded cost belongs to which received item, and on what basis.

A simple example with explicit assumptions

Suppose one received line has a value of 300 and another 700 in the same currency. If a freight amount of 100 is allocated by value, the shares are 30 and 70. That example excludes tax, rounding complications, returns and other costs. It explains a proportional allocation; it is not a recommendation that value is always the right basis.

Choose the basis and confirm what remains

Choose value, weight or volume using valid product measurements. Confirm the quantity still held from each received line. The supported workflow separates remaining inventory from sold-stock expense and includes FIFO handling where configured.

Turn the result into a pricing conversation

Recorded cost can inform a decision, but it is not the selling price. Consider the other costs of the channel and the commercial agreement separately. Write down your assumptions so a later change in freight does not look like an unexplained margin movement. A shop benefits from a repeatable review more than a complicated dashboard nobody checks.

Review the stock and expense result

If 60 of 100 equal-value units remain when a freight charge of 200 is allocated, a simplified illustration assigns 120 to inventory and 80 to sold-stock expense. Check actual tax, rounding and quantities. Allocation does not determine every customs obligation or automatically reprice the catalog.

A practical checklist for your next working week

Choose one recent purchase to review. Locate the received items and all relevant cost documents. Check the proposed allocation basis and product measurements. Compare the result with the assumptions behind your selling price.

Related guides

• Allocate landed costs
• Review stock attention

Before your next review

Start with received purchase lines and verified cost documents. Choose the supported basis, confirm quantities still held and review the inventory and expense split. Make the selling-price decision separately.

Choose your next step

Read the related task guide, or ask us a question about the workflow your business needs.