Start with the job the worksheet can do
A shared freight invoice often covers several product lines. A SKU allocation worksheet turns that shipment-level charge into repeatable line-level cost assumptions for catalog planning, margin review, or a landed-cost estimate. It does not decide which costs customs includes in declared or customs value. That treatment depends on the destination rules and the transaction facts.
- Keep product value and each shared charge as separate inputs.
- Choose one basis before calculating; do not switch methods midway through the shipment.
- Reconcile the allocated line amounts to the original freight and handling total.
- Save the supplier invoice, carrier invoice, and allocation worksheet together.
Choose a basis that matches the record you can support
There is no one allocation basis that fits every product or destination. Goods value can be useful when each SKU has a reliable purchase value. Weight can be useful when transport cost is driven mainly by mass. Quantity can be a simple operational method for similar items. An equal-line split is transparent but may be poor for very different products. The important part is making the basis visible and applying it consistently.
- Goods value: each line receives a share based on quantity × unit goods value.
- Weight: each line receives a share based on its shipment weight in the same unit.
- Quantity: each unit receives the same share when product units are comparable.
- Equal per SKU line: each product line receives the same amount; use only when that simple policy is appropriate.
Use the same formula for every line
Formula:
SKU allocation share = SKU allocation base ÷ all SKU allocation bases
Allocated shared cost = shipment shared cost × SKU allocation share
SKU planning cost = goods value + allocated shared cost
Per-unit planning cost = SKU planning cost ÷ quantityFor a selected basis, divide one SKU line’s allocation base by the total allocation base for all lines. Multiply that percentage by the total shared cost. The Freight Cost Allocation Calculator makes this calculation visible and downloads a local worksheet so the SKU share, allocated amount, and per-unit result can be reviewed later.
- A zero or missing value cannot support value-based allocation.
- A missing weight cannot support a reliable weight-based allocation.
- Round displayed line amounts only after keeping a precise total for reconciliation.
Example: chargers and cables in one shipment
A seller imports two product lines: 100 USB-C cables at USD 3 each and 40 wall chargers at USD 12 each. Freight, insurance, and handling total USD 520. A goods-value method uses USD 300 for the cables and USD 480 for the chargers, so the cables receive 38.46% of the shared cost and the chargers receive 61.54%. The worksheet then shows the allocated total and the cost per unit for each line.
- Cable goods value: USD 300; allocated shared cost: USD 200.
- Charger goods value: USD 480; allocated shared cost: USD 320.
- Allocated shared total: USD 520, matching the shipment-level charge.
- The seller can then compare each line in the Landed Cost Calculator while keeping duty and destination-value treatment as a separate verification step.
Keep customs value separate from internal cost allocation
An internal cost allocation can help a team understand product economics, but it does not automatically establish the customs value of each line. For US imports, CBP guidance discusses the value on the commercial invoice and valuation additions; other destinations use their own implemented valuation rules. Use the Customs Value Calculator only after checking the required destination basis, and record the supplier and carrier documents that support the figures.
- Do not turn a spreadsheet split into a filing rule without checking the destination guidance.
- Do not hide freight, insurance, or handling in an unexplained unit price.
- Keep the allocation method, currency, input invoices, and calculation date with the shipment record.
Common mistakes before the worksheet is reused
The most common error is using an allocation basis that the data cannot support. A value method with blank unit prices, a weight method with guessed weights, or a quantity method for radically different products can create misleading unit costs. Another frequent error is copying a previous shipment method without checking whether the product mix, carrier invoice, currency, or destination has changed.
- Mixing supplier cost, retail price, and declared value in the same goods-value column.
- Using ship-from country instead of the SKU-level country of origin in the catalog record.
- Failing to reconcile rounding differences to the carrier invoice total.
- Treating a cost-allocation result as a confirmed duty or customs-value outcome.
- Skipping a catalog field check before using SKU results in invoice or duty workflows.
What to verify before filing or shipping
Use the worksheet to organize the SKU-level numbers, then verify the actual customs-value, tariff, and documentation treatment in the destination source. The Sources page lists the official databases TariffCatalog expects users to check. For a correction to this workflow or a source reference, use the corrections process.
- Destination market and valuation basis.
- Product facts, origin, quantity, and currency on the invoice and catalog.
- Carrier and supplier invoice totals.
- Any rate or customs-value input used in an import duty estimate.