IR cost allocation methods

inventory receipt cost allocation methods for additional costs breww supports distributing your inventory receipt's additional costs amongst your purchased items in a number of ways here we break down how each method is calculated so that you can decide which best works for your situation and costs example we'll use the example of a £60 00 delivery cost spread over three purchased items, all at £30 00 per kg 100 kg of amarillo 75 kg of citra 50 kg of el dorado screenshot 2023 01 12 at 18 13 00|690x241 allocate evenly if allocate evenly is chosen, breww simply divides the total cost by the number of lines on the inventory receipt and allocates that amount per line in this example, that would be £60 00 / 3 = £20 00 of additional cost added per line this figure is added to the total cost of the line allocate proportionally based on quantity if this option is chosen, breww calculates the total quantity of the items on the inventory receipt, which is 200 kg in this example then breww allocates the cost proportionally amongst each line 100 kg of amarillo (100 kg / 200 kg) x £60 00 = £30 00 75 kg of citra (75 kg / 200 kg) x £60 00 = £22 50 25 kg of el dorado (50 kg / 200 kg) x £60 00 = £15 00 allocate proportionally based on price this option works similarly to allocate proportionally based on quantity but instead calculates the total price of all lines and allocates the cost proportionally amongst each line in this example, the total price of all items is £6,000 100 kg of amarillo (£3,000 / £6,000) x £60 00 = £30 00 75 kg of citra (2,250 kg / £6,000) x £60 00 = £22 50 25 kg of el dorado (1,500 kg / £6,000) x £60 00 = £15 00