Sales and Purchase Contract Terms

Contract terms are applicable to Sales and Purchase Contracts.

A set of contract terms is a structure that contains all contract information required to determine pricing during invoice generation. That is, it includes all the pricing, the type of material being contracted, additional charges and taxes, delivery terms, contract start and end dates, currency, and applicable invoice iteration types.

There can be more than one set of contract terms defined for a contract as long as the contract dates do not overlap, or if they do overlap, that a different set of delivery terms are specified. Whichever delivery term is specified on the despatch order, the matching contract term is used to calculate the invoice.

Contract terms can be copied from one contract to another.

Contract Pricing

Contract pricing can include contract charges, service charges, taxes, specification of payment terms, linking to products in other contracts, the setting up of assay exchange settlement rules, the entering of freight parities, the specification of the types of invoices to be issued, and the entering of demurrage specifications.

Override of Contract Terms

There are four levels of contract terms to consider for pricing:

  1. Contract level
  2. Product level, which override the contract terms at the contract level
  3. Quota level, which override the contract terms at the product or contract levels
  4. Despatch order level, which override the contract terms at the quota, product or contract levels

For contract term overrides, if certain properties are left blank (for example, the exchange rate source), these are inherited from the previous contract term, all the way back to the contract. For example, if a contract is set up with a specific exchange rate source for invoicing, but does not define the property for the product or quota contract terms override, the value from the contract level is used.

Certain properties can be defined at the despatch order level that supersede or override those on the quota or contract product level (for example, the required quantity or the specification). The despatch order does not have a full set of contract terms of its own, but uses the most relevant contract terms at the time of invoicing, from the quota, contract product or contract. However, quotation pricing, assay rules, tolling details, invoice fields, costs, service charges and demurrage/despatch conditions can be overridden for an individual despatch order. Additional contract charges can also be specified for an individual despatch order.

Decimals and Rounding

Rounding rules are applied to the invoice process by specifying the number of decimal places for any of the concepts, and are editable in context of each concept.

Videos

A Datamine consultant recorded this video about assay rules in MineMarket.

A Datamine consultant recorded this video about demurrage and despatch in MineMarket.