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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
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