Using Actual Freight

The actual freight shown on the supplier's invoice may be distributed or amortized among all inventory being received on this invoice.  Mixed invoices (invoices that contain rolls and items) may be received and distribute the freight according to a specific mathematical procedure.

• Freight is distributed according to percentages of the total invoice.
• Mixed invoices are divided first and the percentages for each type of inventory (roll or item) are calculated.
• If more than one item is being received with rolls; the items are divided again to calculate a weighted percentage among just the items.
• Rolls are combined (total square yards or square feet) for the invoice. Then the percentage of freight (in dollars) is divided by the total number of square yards on the invoice.

To illustrate the algorithm more clearly, an example is shown here:

Total Product Amount on Invoice:	$2,000.00
1 Roll Line (80 sq. yds.) for $1,500.00 1 Item Line (20 pieces)  for $   500.00
Total Freight Amount on Invoice:	$100.00
Roll Percentage is calculated: Take the Line Total of the Inventory and divide it by the total invoice   $1500/$2000	75%
Item Percentage is calculated: Total Invoice divided by the Item Total    $2,000/500	25%
Now, to calculate the actual freight:
Roll:  Total Freight Amount multiplied by 75% $100.00 x 75%	$75.00
Item:  Total Freight Amount multiplied by 25% $100.00 x 25%	$25.00
Last, the per unit freight is calculated:
Roll:  Total Freight for Rolls is divided by Total Roll Units on the Line $75.00/80 sq. yds.	$ .94 per yard
Item:  Total Freight for Items is divided by Total Item Units on the Line $25.00/20 pieces	$1.25 per piece