Shopify cost adjustments on transfers: what Shipping amount and Customs duties do to product cost
Cost adjustments record what a delivery really cost: on the inventory transfer linked to a purchase order, you add Shipping amount, Customs duties and other fees to a shipment, and the Cost summary adds them up so you can compare the agreed cost with the actual cost. They don't change your products' cost: Cost per item stays fixed when you receive. To put freight and duty into product cost, split the totals across the units and update Cost per item, or use a landed cost app.
How to add a cost adjustment
- Go to Products > Transfers and open the transfer linked to your purchase order.
- In the shipment, choose Edit shipment.
- In Cost summary, choose Manage.
- Pick an adjustment type, such as Shipping amount or Customs duties, and enter the amount. Add more if needed.
- Save.
Source: Shopify Help, receiving inventory from a purchase order. Unlinking a transfer does not undo receiving or cost adjustments.
What changes, and what doesn't
| Place | Changes? | Why |
|---|---|---|
| Cost summary on the transfer | Yes | It adds up all shipment adjustments |
| Cost per item | No | One fixed number per variant; receiving does not change it |
| Profit reports | No | They use the cost recorded on each order, from Cost per item |
| Month-end inventory value | No | Units × Cost per item |
Split them onto the products: a worked example
One shipment: 200 units of A at $4.00 and 100 units of B at $12.00, so $2,000.00 of goods. Adjustments: Shipping amount $150.00 and Customs duties $100.00.
| Product | Units | Price | Freight | Duty | Landed per unit |
|---|---|---|---|---|---|
| A | 200 | $4.00 | $100.00 ($0.50 each) | $40.00 ($0.20 each) | $4.70 |
| B | 100 | $12.00 | $50.00 ($0.50 each) | $60.00 ($0.60 each) | $13.10 |
| Total | 300 | $2,000.00 | $150.00 | $100.00 | $2,250.00 |
- Freight by units: $150.00 ÷ 300 = $0.50 a unit. Use weight instead when sizes differ a lot.
- Duty by value: A is $800 of $2,000 (40%), so $40.00; B is 60%, so $60.00.
- Check: 200 × $4.70 + 100 × $13.10 = $2,250.00 = goods + freight + duty.
Then fold each landed cost into the product's weighted average and update Cost per item. More in landed cost per unit.
True COGS and cost adjustments
- True COGS does not yet read Shopify's cost adjustments. Enter the same amounts on the delivery in True COGS, on a paid plan.
- It splits freight by units, weight or value, and duty, brokerage and port fees by value, then writes the result into your weighted average or FIFO cost and Cost per item.
- If the bill comes after the goods, record it as a late bill: it goes on the stock still held.
Related guides
Questions merchants ask
Do Shopify cost adjustments update Cost per item?
No. They are added up in the transfer's Cost summary. Shopify's help says Cost per item stays fixed when you receive a purchase order or transfer.
Where is the Cost summary on a Shopify transfer?
Open the transfer linked to the purchase order, choose Edit shipment on the shipment, then Manage in the Cost summary.
Are cost adjustments removed if I unlink the transfer?
No. Shopify says unlinking does not undo any receiving or cost adjustments.
How do I split customs duties across products?
By value: each line's share of the goods' value times the duty. Then divide by the line's units.
Does True COGS read Shopify cost adjustments?
Not yet. Enter the same freight and duty amounts on the delivery in True COGS, on a paid plan, and it splits them for you.
Try True COGS free. True COGS is an inventory costing app for Shopify by Nexus Logic Systems. It records the price you paid on every delivery (a received purchase order or a transfer), with its share of freight and duty on paid plans, keeps every price with its date, and writes your moving weighted average cost, or FIFO cost on a paid plan, to Shopify's Cost per item. It is free for up to 25 variants with a cost on record; paid plans start at $29 a month or $290 a year.
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