Shipping Cost Calculation

started a topic about 1 year ago


I was offered 100% discount on some items from a supplier, WellAir
We had 2 items on order at 210$ no dicount, and 3 other items totalling about 8 000$ USD at 100% discount.
Shipping charge was 370$ Canadian.
When we allocated the shipping charge to that specific PO, it costed the items in a silly way (I think DEAR needs to review this, in general):
It allocated 100% of the shipping charge to these 2 items for $210, (105$ each). So now my stock value for these is cost + 100% of the shipping charge, when in fact, cost should be less, because the full value of the order was higher, minus the 100% discount attributed to procucts.
In other words, my products at ($8000 - 100% supplier discount) have 0$ cost associated to them, even though they represent a huge percentage of the total order value without that supplier discount associated to them.
These items should have cost their proportional value in shipping cost, instead of just 0$ to them, and 100% shipping cost to those 2 other smaller products I ordered that didn’T have a discount associated to them. 

Does this make sense?

Now, when I sell these smaller items, system will show -% in Margin and profit. When that simply is not true.


  • So is what you're saying Patrick, that the supplier's freight cost has been apportioned to the products based on the product's unit price in the PO... Whereas it should be apportioned based on physical attributes, e.g cube or weight. I agree, although it would force Dear to make sure you have phsycial dimensions in for every item. Alternatively, you could be given the option in Settings (or per PO) to choose how supplier freight cost is apportioned: physical dimensions, or cost...
  • no, not dimensions.

    I ordered some products. some were at Full price, some were at 100% discount. None we free samples, they were just given to us at 100% discount to be put in stock and sold at full List price.

    Dear allocated 100% of the shipping costs to the items that were bought at Full price, and 0% of the shipping cost to the items that were bought at 100% discount.

    So, regardless of original dollar value of the item, Dear allocated the shipping cost based on the percentage of value of invoice of the items.

    Now, I have 2 items (i bought at full price from supplier) that cost me 105$ each, costed as having cost me 305$ each, because shipment cost a total of 400$.

    My regular selling price for these COST 105$ items (now landed cost 305$) is 150$. Dear says I am LOSING money selling them at regular price.

    It usually costs me 50$ to bring in these items. My regular landed cost should be 130$.

    The two items i bought at 100% discount from the supplier usually cost me 350$ in shipping to bring in (because they have big and heavy). 

    Dear won't let me allocate 350$ to these 100% discounted items to balance out my landed costs as per usual.

    Does this make sense? 

    Any of my sales staff that sells these 2 original items at a sell price of 150$ will have their commission penalized, as the system thinks they sold them below cost price, since the shipping was wrongly allocated.

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