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# Material Orders Shipping and Tax Cost Distribution

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When calculating the overhead cost of a material, Cartegraph can use either shipping and tax cost or a percent cost.

The following is an example of how calculations are made using shipping and tax.

1. Find the line total without overhead for each line: PPU * QTY
2. Add all line totals: (\$100.00)
3. Determine what percent each line is of the total. Again without overhead: (% of Order column)
4. Add shipping and tax: (\$20.00)
5. Split out in the same percentages found in step 3: (\$ values in Distributed column)
6. Determine the new price per unit: ((PPU * QTY) + Distributed) / QTY or ((1 * 10) + 2) / 10 = \$1.20

When we stock the materials into the system we use the new numbers.

If making calculations using percent instead of shipping and tax. With a shipping cost of \$18.00, a tax of \$2.00, and 5%, the order looks like:

Material Price Per Unit QTY  Total % of Order Distributed PPU w/ Overhead New Total
Part 1 \$1.00 10 \$10.00 10% \$2.00 \$1.20 \$12.00
Part 2 \$1.00 10 \$10.00 10% \$2.00 \$1.20 \$12.00
Part 3 \$1.00 10 \$10.00 10% \$2.00 \$1.20 \$12.00
Part 4 \$1.00 10 \$10.00 10% \$2.00 \$1.20 \$12.00
Part 5 \$1.00 10 \$10.00 10% \$2.00 \$1.20 \$12.00
Part 6 \$12.00 10 \$50.00 50% \$10.00 \$6.00 \$60.00