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Former Member
Apr 01, 2008 at 09:36 AM

Shipping Cost Allocation


Hi All,

When we ship goods to our customer on DDU terms (Delivered Duty Unpaid) or DDP (Delivered Duty Paid), what is the best way to allocate the logistics cost so that it is somehow linked to a particualar shipment and customer? This is useful to analyze total COGS to get the true profit.

We do not bill the customer seperately for the shipping, it's included in the price. Also, we are billed directly by the forwarder, so it is not part of the COGS invoice for the actual products.

Any ideas?

Many thanks,