SAP B1 Landed Cost Allocation Calculator
Invoice price is rarely what an imported part costs you. Freight, insurance, duty and brokerage need to land on the right items before margins and inventory values mean anything. This calculator shows the arithmetic behind a landed cost allocation.
Your numbers
Your results
Duty bases differ by country. Confirm customs valuation rules with your broker. This is an estimate for costing, not a customs declaration.
Landed cost per unit versus duty rate
Sweeps Duty rate on this item from 0 to 40, holding your other inputs fixed.
Landed cost review for your imports
Optional review of how your landed cost allocation and accounts are set up in SAP Business One.
Optional. The tool and every export work without this. No spam.
How to use it
Enter the invoice value of the line you care about and of the whole shipment. Add freight, insurance and other charges at shipment level, and the duty rate that applies to that tariff line. The tool allocates shared charges by value share and adds line-specific duty to give a landed cost per unit.
Allocation logic
Shared charges are split by value share: line value divided by shipment value. SAP Business One's landed cost document lets you choose other allocation criteria for each cost, such as quantity, weight, volume or equal split. Value-based allocation is a reasonable default for freight on mixed goods, while weight suits heavy bulky items. Compare methods by changing the shares.
- Value: simple, favours cheap bulky items
- Weight or volume: tracks real freight drivers
- Quantity: fine for identical parts
Reading the result
The uplift percentage tells you how much to add to supplier price when quoting or setting standard cost. Uplift above 15 to 20 percent on low-value components usually means freight is eating your margin, and ordering larger, consolidated shipments may pay for itself.
Common mistakes
Charging duty on invoice value when customs value includes freight, allocating by quantity across items with very different prices, ignoring brokerage fees, and posting landed cost after items were already sold, which pushes the difference to cost of goods sold instead of inventory.
Frequently Asked Questions
Does SAP Business One support landed costs?
Yes. A landed cost document lets you attach additional costs to goods receipt PO or A/P invoice lines and choose how each cost is allocated. Check your version for supported criteria and posting accounts.
Should duty be calculated on freight too?
In many countries customs value includes freight and insurance up to the border. In others it does not. Ask your broker and adjust the item value you enter if needed.
Why allocate by value share?
It is a neutral default when you lack weights or volumes. It spreads costs in proportion to what each item is worth, but it can overcharge expensive light items and undercharge cheap heavy ones.
What happens if stock was already sold?
Landed cost posted late cannot fully reach the inventory value for units already shipped, so part of the cost lands in cost of goods sold. Post landed costs promptly after receipt.
If imports run through SAP Business One and you want landed cost reviewed or automated, Netray can look at your setup. The tool does not need it.
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