Tiếng Việt
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HOW TO ALLOCATE LOGISTICS COSTS TO EACH SKU IN A MIXED SHIPMENT
A single import shipment may contain SKUs with very different values, weights, volumes, quantities, HS classifications and handling requirements. Dividing every freight, local charge and clearance cost by unit count can understate the cost of bulky SKUs while overstating the cost of high-value but lightweight products. The distortion flows into landed cost, gross margin, pricing and replenishment decisions. A reliable model does not search for one universal basis. It separates costs into cost pools, assigns identifiable costs directly, and selects an allocation driver that reflects the cause of each shared cost.
QUICK FACTS
Import duty, product-specific inspection and special surcharges should be posted directly to the relevant SKU whenever they can be identified.
Physical freight normally follows kg, CBM or chargeable weight; insurance follows value; documentation may follow entries, lines or shipment count.
The driver should explain why an SKU consumes or generates part of the cost.
All direct and allocated amounts must equal the actual total cost of the shipment, without omissions or double counting.
An internal landed-cost worksheet must not be used to alter customs values, duties or data declared to customs.
SCOPE OF APPLICATION
This method is designed for importers and international buyers handling mixed shipments with multiple SKUs under one booking, bill of lading, container, LCL consignment, air waybill or truck movement. Its purpose is to calculate logistics cost and management landed cost at SKU or unit level.
Trading goods, raw materials, spare parts, machinery and consumer goods moved by FCL, LCL, air, road or multimodal transport.
Project cargo, OOG, dangerous goods, reefer cargo, damaged shipments, free-of-charge goods and SKUs subject to separate regulatory inspection.
KEY TERMS
| Term | Meaning | Operational role |
|---|---|---|
| SKU | Stock Keeping Unit: a distinct inventory code. | The final cost object for allocation and unit-cost calculation. |
| Cost Pool | A group of costs with a common nature or cost cause. | Prevents freight, insurance, documentation and exception costs from being mixed into one arbitrary split. |
| Allocation Driver | The basis used to allocate a cost, such as kg, CBM, value, pallets, cartons or customs lines. | Determines each SKU’s share of a pooled cost. |
| Direct Assignment | Posting a cost directly to an identifiable SKU. | Produces greater accuracy than averaging. |
| Landed Cost | The cost of bringing inventory to the location and condition in which it is ready for use or sale. | Supports margin, pricing and sourcing decisions. |
| Chargeable Weight | The billable weight under the applicable transport rule. | Useful for allocating air freight and weight-rated charges. |
HOW THE ALLOCATION MECHANISM WORKS
The preferred sequence is direct assignment first, followed by allocation of the genuinely shared balance. Each cost pool should have its own driver.
SKU share = SKU driver quantity ÷ total shipment driver quantity.
SKU allocated cost = cost-pool value × SKU share.
(Purchase cost + non-recoverable taxes + direct cost + allocated shared cost) ÷ actual received quantity.
The sum assigned to all SKUs must reconcile to source invoices, debit notes and shipment accounting entries.
| Cost pool | Examples | Preferred driver | What to avoid |
|---|---|---|---|
| Direct costs | Duty by HS line, product inspection, DG/OOG surcharge, special packing | Direct posting by SKU or document line | Do not average across unrelated SKUs |
| Physical transport | Ocean freight, air freight, trucking, CFS handling | Kg, CBM, W/M, chargeable weight, pallet position or a combined driver | Do not use value where space or weight causes the cost |
| Cargo insurance | Marine cargo insurance | Insured value or contract-based CIF value | Do not use unit count where SKU values differ materially |
| Documentation and clearance | D/O, document fee, customs brokerage, shipment bank fees | Entry lines, document sets, SKU lines or justified equal split | Do not use kg for fixed transaction costs |
| Exception costs | Demurrage, detention, storage, amendment and extended inspection | Root cause, time, occupied space or affected SKU group | Do not spread to every SKU when only one group caused the delay |
ALLOCATION METHOD – WORKED ANALYSIS
The example below uses three SKUs. Shared transport and forwarding cost of VND 30 million is allocated using a combined driver of 50% weight and 50% CBM. Insurance of VND 4 million follows cargo value. Documentation and clearance of VND 3 million is split over three lines with comparable processing effort.
| Measure | SKU A | SKU B | SKU C | Total |
|---|---|---|---|---|
| Quantity | 100 | 200 | 50 | 350 |
| Weight | 500 kg | 300 kg | 200 kg | 1,000 kg |
| Volume | 2 CBM | 3 CBM | 1 CBM | 6 CBM |
| Cargo value | VND 200m | VND 150m | VND 50m | VND 400m |
| Allocated transport and forwarding | VND 12.5m | VND 12m | VND 5.5m | VND 30m |
| Allocated insurance | VND 2m | VND 1.5m | VND 0.5m | VND 4m |
| Documentation and clearance | VND 1m | VND 1m | VND 1m | VND 3m |
| Total allocated logistics | VND 15.5m | VND 14.5m | VND 7m | VND 37m |
| Logistics cost per unit | VND 155,000 | VND 72,500 | VND 140,000 | — |
DOCUMENTS AND DATA TO CHECK
| Document/data | Issuer | Fields required | Purpose |
|---|---|---|---|
| Commercial Invoice | Supplier | SKU, quantity, price, value, pricing term | Purchase cost and value-based drivers |
| Packing List | Supplier | Net/gross weight, packages, dimensions, CBM by SKU | Physical freight and handling allocation |
| B/L, AWB, CMR or road waybill | Carrier/forwarder | Mode, packages, gross weight, chargeable weight, container | Validate the freight basis |
| Quotation, invoice and debit note | Carrier/forwarder/terminal | Charge code, unit, currency, VAT, collecting party | Build cost pools and capture local charges |
| Customs declaration and duty worksheet | Importer/customs authority | Line, HS code, value, rate, tax amount | Directly assign taxes by SKU |
| Goods receipt and delivery record | Warehouse/operations | Actual received quantity, shortage, excess, damage | Calculate unit cost on actual receipt |
| SKU cross-reference | Company | Supplier code, internal code, UOM, pack size | Prevent code and unit mismatches |
STEP-BY-STEP ALLOCATION PROCESS
Lock SKU codes, quantity, UOM, weight, CBM, value and HS line; map supplier codes to ERP codes.
Collect invoices, debit notes, duties, insurance, freight, local charges, inland delivery and warehousing up to the defined receipt point.
Separate recoverable tax, post-receipt selling costs, penalties and costs unrelated to bringing inventory to its usable location and condition.
Post clearly identifiable amounts to the relevant SKU before creating shared pools.
Group the balance into physical freight, insurance, documentation, clearance, handling and exceptions.
Choose kg, CBM, chargeable weight, value, pallet, customs line or a combined driver and document the rationale.
Allocate each pool, add direct costs, reconcile to source totals and post any rounding adjustment transparently.
Store source files, exchange rates, cut-off date, preparer, approver and version for audit and late-invoice true-up.
RISKS AND COMMON ERRORS
Impact: bulky or heavy SKUs are under-costed. Control: use a physical or combined driver.
Impact: small high-value SKUs absorb too much freight. Control: use value only for value-driven charges.
Impact: landed cost is overstated. Control: map every invoice and charge code and mark it once assigned.
Impact: unit cost is wrong after shortage, excess or damage. Control: close on warehouse receipt data.
Impact: the operational root cause is hidden. Control: allocate by cause, time or affected SKU group.
Impact: an internal worksheet is used to alter declaration data. Control: maintain separate compliance and management layers.
Impact: provisional cost is never corrected. Control: define cut-off, accrual and true-up rules.
Impact: SKU margins become incomparable across periods. Control: approve an allocation policy and retain change history.
ACCOUNTING AND COMPLIANCE SOURCES
| Source | Issuer | Status | Application |
|---|---|---|---|
| IAS 2 – Inventories | IFRS Foundation | Published international standard | Identifies purchase costs, non-recoverable taxes, transport, handling and costs of bringing inventory to its present location and condition. |
| Circular 99/2025/TT-BTC | Vietnam Ministry of Finance | Effective 1 January 2026 for financial years beginning on or after that date | Reference for Vietnam’s current enterprise accounting regime and internal accounting policy. |
| Circular 39/2015/TT-BTC as amended by Circular 60/2019/TT-BTC | Vietnam Ministry of Finance | Check consolidated and subsequent amendments at declaration date | Separates internal inventory allocation from customs valuation rules. |
| Shipment quotations, tariffs, invoices and records | Carrier, forwarder, terminal, insurer and customs | Shipment- and date-specific | Evidence for charge codes, units, scope and actual allocation drivers. |
FAQ
Only where value drives the cost, such as insurance. Freight and handling usually require weight, volume or chargeable-weight drivers.
There is no universal answer. Review whether weight, space, pallet position or payload limits drive container use. A combined driver may be more representative.
Where all SKUs require comparable processing, shipment-level charges may be allocated by customs line or a justified equal split. Extra product-specific documentation should be directly assigned.
No. Duty is determined by customs line, HS code, customs value and applicable rate and should be assigned directly to the relevant SKU.
It depends on recoverability and accounting policy. Recoverable VAT is normally tracked separately; non-recoverable tax may form part of cost under the applicable rules.
Where one pool is materially affected by more than one factor, such as a container constrained by both weight and volume. The weighting should be documented and applied consistently.
Use a provisional-cost and true-up process with a defined cut-off, supportable accrual and adjustment when the final invoice is received.
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