Specify a Payable Analyte for a Set of Contract Terms

This activity is only applicable to contracts where the Contract Pricing Basis is Analyte Pricing. See Enter General Details for a Sales or Purchase Contract.

Security Note: You need the Allow contract maintenance security right in the Contracts domain security rights group for this activity.

Activity Steps

Open the Sales Contract or Purchase Contract.
Expand the required set of contract terms.
Right-click the Payable Analytes node for the selected set of contract terms and select New » Payable Analyte from the menu.
Expand the Analyte Definitions node and select the required analyte definition.
MineMarket creates a node for the selected analyte under the Payable Analytes node.
Select the node for the payable analyte.
Update the Currency if required. Select from the currencies defined in the Currency/Exchange Editor.
Specify a Payable Grade UOM Override if required. Optional unit of measure (UOM) to which to convert the payable analyte's assay value (or sample value or specification) before calculating the payable grade. Select from the Proportion units defined in the Unit Conversion Editor.
Example: In this example, the configuration of the contract includes Mass Basis is Dry and the contract terms includes Use Dry Quantity is True. The payable analyte configuration includes:
- Payable Grade UOM Override is t.oz/t
- Unit is t.oz
- Payable Grade Decimals is 3
- Payable Content Decimals is 3
- Payable Evaluation Method is By Payable Grade
The quantity is 9297.979 dry metric tonnes. The silver assay is 10.176 g/t and the payable percentage is 95%. There are no deductions. The conversion factor from grams to troy ounces is 31.1035. The calculation of the payable content is:
1. Convert the silver assay to the UOM override: 0.327165753 t.oz/t
2. Multiply by the payable percentage to calculate the payable grade: 0.310807465 t.oz/t
3. Round to the payable grade decimals: 0.311 t.oz/t
4. Multiply by the quantity to calculate the payable content: 2,891.6714690 t.oz
5. Round to the payable content decimals: 2,891.671 t.oz
Example: (for comparison) This example is as above, but there is no payable grade UOM override specified. The conversion to troy ounces occurs later, and results in a slightly different payable content:
1. Multiply the silver assay by the payable percentage to calculate the payable grade: 9.6672 g/t
2. Round to the payable grade decimals: 9.667
3. Multiply by the quantity to calculate the payable content: 89,883.562993 g
4. Convert to the payable analyte unit: 2,889.821499 t.oz
5. Round to the payable content decimals: 2,889.821 t.oz
Update the Unit for the material content of the payable analyte if required. Select from the Mass units defined in the Unit Conversion Editor.
Select the Payable Evaluation Method. The choice of the payable evaluation method can result in slight differences in the payable content due to rounding and how the payable percentages and deductions are applied. Select from:
- By Payable Grade—The deduction and payable percentage are calculated on the analyte grade and the result is multiplied by the dry mass.
- By Payable Mass—The payable percentage is calculated on the dry mass. No deduction can be specified for the payable analyte.
- By Content—The deduction and payable percentage are calculated on the analyte content.
Select the Deduction Method used to calculate the payable percentage. Select from:
- Fixed Payable Percentage—The deduction is applied, and then the payable percentage is applied.
- Minimum Payable Percentage—The calculated deduction is compared to the difference between the original amount and payable percentage. Only the deduction that results in the smaller payable percentage is applied.
  Example: (Payable Evaluation Method is By Payable Grade) Consider an original concentration of copper of 50%. For a payable percentage of 96%, the payable grade is 48% of copper, that is, a 2% deduction.
  - Case 1: If the deduction is 1.5%, then because a higher deduction of 2% has already been applied, the minimum deduction is already satisfied. Therefore, the payable percentage remains at 48%.
  - Case 2: If the deduction is 2.2%, then because the actual deduction does not satisfy the minimum deduction configuration, the 2.2% deduction is applied instead. Therefore, the payable percentage becomes 47.8%.
  Example: (Payable Evaluation Method is By Content) A contract specifies that the payable percentage of gold will be 92% of content, subject to a minimum deduction of 5 g/mt. Consider a delivery with the following details:
  - Quantity: 139.606 dmt = 153.8893 st
  - Au: 0.438 t.oz/st = 67.4035134 t.oz = 2096.4836 g
  The calculated deduction is 5 g/mt, that is, 698.03 g. If the deduction is applied, the payable content would be 1398.4536 g. If the payable percentage of 92% is applied, the payable content would be 1928.7649 g. Because the deduction results in a smaller content amount, the deduction is applied, and the payable content is 1398.4536 g. The equivalent payable percentage is 66.70%.
Select the Evaluation Method. Method of evaluating a result for the payable analyte for the nominated Invoice Types, spread over multiple transactions if several lots are used to fulfil the despatch order. Select from:
- By Lot—Evaluate the tier result for each individual lot. The lot samples may be in different tier levels.
- Weighted Average—Evaluate the tier result for the weighted average of all transactions. This method allows the whole despatch order to be considered as a whole.
Specify conditions if required:
- Evaluation Method Invoice Conditions—Invoice types to limit the selected Evaluation Method. Only applicable if Evaluation Method is By Lot. If Evaluation Method is By Lot and Evaluation Method Invoice Conditions is Final, only the final invoice is evaluated by lot. Other invoice types are evaluated by weighted average. If Evaluation Method is By Lot and no Evaluation Method Invoice Conditions are selected, all invoice types are evaluated by lot.
- Invoice Conditions—Invoice types and iterations for which the payable analyte (and any related analyte charges; for example, refining charges) are included in the invoice. If no invoice conditions are specified, the payable analyte is applicable for all contractual invoice types.
Depending on the Payable Evaluation Method, enter decimals if required. If decimal places are not defined, no rounding is applied and the values are stored unrounded.
- (By Payable Grade)—Payable Grade Decimals—Number of decimal places for the payable grade calculation. This applies to the payable grade or analyte value of the analyte. The rounded payable grade is used in this rounded form for all other subsequent calculations or contract charges that relate to the payable analyte. Example: If there is a dry mass of 1000 tonnes of material with an analyte value of 35%, but the payable percentage is 95%, the payable grade is 95% * Analyte Grade = 0.95 * 35% = 33.25%. Therefore, if the Payable Grade Decimals was 1, the payable grade is 33.3%.
- (By Payable Mass)—Payable Mass Decimals—Number of decimal places for the payable mass calculation. If decimal places are defined, the rounded payable mass is used in its rounded form for all other subsequent calculations or contract charges that relate to the payable analyte.
- (By Content)—Content Decimals—Number of decimal places for the content calculation. If decimal places are defined, the rounded content is used in its rounded form for all other subsequent calculations or contract charges that relate to the payable analyte.
Update the Payable Content Decimals if required. Number of decimal places for the payable content calculation. This number of decimal places does not apply to the payable percentage directly, but to the result of the payable mass or content of the analyte. The payable content is called the Line Quantity in the invoice preview. If decimal places are not defined, no rounding is applied and the values are stored unrounded.
Example: If there is a dry mass of 1000 tonnes of material, with an analyte value of 35%, then the mass or content of the payable analyte is 1000 * 0.35 = 350 tonnes. If the payable percentage is 95%, that is, only 95 percent of the dry content is payable, then the payable content = 95% of 350 tonnes = 332.5 tonnes. If the Payable Content Decimals is 3, then the result is determined to be 332.500 tonnes. If the Payable Content Decimals is 0, then the result is determined to be 333 tonnes.
Special case: If Adjust Invoice Value Using Unit Price is checked for the set of contract terms, then the Payable Content Decimals is also used to round the payable percentage.
If a Payable Grade UOM Override is specified, enter Payable Grade UOM Override Decimals if required. Number of decimal places for rounding the payable grade unit of measure (UOM) conversion. If decimal places are not defined, no rounding is applied and the values are used unrounded.
Example: In this example, the configuration of the contract terms includes Use Dry Quantity is True. The payable analyte configuration includes:
- Payable Grade UOM Override is t.oz/t
- Payable Grade UOM Override Decimals is 2
- Payable Grade Decimals is 3
- Payable Content Decimals is 3
- Payable Evaluation Method is By Payable Grade
The quantity is 9297.979 dry metric tonnes. The silver assay is 10.176 g/t and the payable percentage is 95%. There are no deductions. The conversion factor from grams to troy ounces is 31.1035. The calculation of the payable content is:
1. Convert the silver assay to the UOM override: 0.327165753 t.oz/t
2. Round to the UOM override decimals: 0.33 t.oz/t
3. Multiply by the payable percentage to calculate the payable grade: 0.3135 t.oz/t
4. Round to the payable grade decimals: 0.314 t.oz/t
5. Multiply by the quantity to calculate the payable content: 2,919.5654060 t.oz
6. Round to the payable content decimals: 2,919.565 t.oz
Update the Exchange Rate Source if required. Exchange rate source used to determine the exchange rate from the payable analyte calculation currency to the primary currency used by the contract. Select from the exchange rate sources defined in the Currency/Exchange Editor.
Update the Exchange Rate Method if required. Method used to determine the exchange rate to the payable analyte's Currency. Select from:
- Average Quotation Period—The exchange rates for the quotation period (QP) are averaged, and the result is used to convert the price value into the currency of the QP.
- Daily Quotation Period Average—The price value is converted into the currency of the QP for each day of the QP, and these converted values are then averaged.
- Date Of Invoice
- Previous Month Average
- Last Day Of Previous Month—Uses the last business day of the previous month if a calendar is specified for the Exchange Rate Source.
- Day Before Invoice Date—Uses the last business day before the invoice date if a calendar is specified for the Exchange Rate Source.
- Last Known Exchange Rate
- Bill Of Lading—If the bill of lading date is a non-working day in the applicable calendar, uses the exchange rate from the previous business day.
- Day Before First Invoice Date—Uses the last business day before the date of the first commercial invoice if a calendar is specified for the Exchange Rate Source.
Note: For the options that refer to a QP, if the applicable QP has multiple QP lines, each line is calculated individually before the Pricing Method of the QP header is applied. If multiple calendars are specified, the last business day common to all calendars is used.
Complete the remaining fields as required.
- Maximum Grade—Maximum grade for the payable content. If the calculated payable grade is greater than the specified maximum grade for the payable analyte, then the maximum grade will be used in invoice calculations.
- Minimum Grade—Minimum grade for the payable content. If the calculated payable grade is less than the specified minimum grade for the payable analyte, then the minimum grade will be used in invoice calculations.
- Applicable Taxes—Select from the taxes configured for the set of contract terms.
- Not Taxable—Whether the payable analyte is taxable.
- Include Only If QP Is Due—Whether the payable analyte should be included in invoice calculations only if the quotation period (QP) is due. If checked, and the invoice date is before the QP date, the payable analyte (and any related analyte charges; for example, refining charges) will not be included in the invoice. However, all payable analytes are included in invoice revaluations, even those for which the QP is not due.
- Pricing By Lot—Whether to calculate the pricing by lot. Only applicable if the Evaluation Method is By Lot. If checked, payable content and pricing are calculated per lot, and each lot displays as a separate line item in the invoice. If unchecked, the payable content is calculated per lot. However, the pricing is calculated on the total payable content, and the payable analyte displays as a single line item in the invoice. Default: Checked.
Enter QP headers:
1. Right-click in the Quotation Pricing Header field group and select New from the menu.
  QP headers can be set up for each invoice type that is selected on the Contractual Invoice Types node. Multiple QP headers can be configured for an invoice type if Maximum Iterations is greater than 1 for that invoice type on the Contractual Invoice Types node.
2. Select the required Quotation Pricing Type from the list of contractual invoice types.
3. Complete the following fields.
  - Pricing Method
  - Weighting Type
  - Weighting Reference
  - Pricing Decimals
  - Price Approved
  Note: See Quotation Pricing Headers and Lines for descriptions of these and the following fields.
4. Select whether to Force QP Header.
5. If the QP header is Provisional, and the pricing method is Average, Highest or Lowest, select whether to Include Forward Curve Prices in invoice calculations.
Define QP lines for each QP header:
Note: One QP line is added by default for each header.
1. To add another QP line, right-click in the Quotation Pricing field group and select New from the menu.
2. To create optional QP lines, right-click a QP line for a final QP header and select New Optional QP from the menu. See Quotation Pricing Certainty for information about optional QP lines.
3. To change the default QP line in a group of optional QP lines, right-click a QP line and select Set As Default QP from the menu.
  Note: The default QP line is in bold and at the top of the group of optional QP lines. Optional QP lines can be deleted. If only one QP line remains in the group, the bolding is removed.
4. Enter the Spot Pricing Date if required.
5. Select the Pricing Method.
6. If the Pricing Method is Average, Highest or Lowest, complete the following fields.
  - Price Series
  - Quotation Period
7. If the Pricing Method is Average, select whether to use Daily Pricing.
8. If the Pricing Method is Fixed Unit Price, enter the Price Value.
9. Complete the remaining fields as required.
  - Floor
  - Cap
  - Fixed Price Charge
  - Decimal Places
  - Price Currency
  - Price UOM
  - Adjust To 3rd Wednesday
  - Declare By
  - Weighting Value (% or Quantity)
  - Quantity UOM
  - Use All Fixed Weight
  - Applicable To Quantity Of Invoice
  - Invoice Iteration
  - Exchange Rate Source
  - Exchange Rate Method
  - Allow Incomplete Period to Invoice Date
  - Planned Hedge Date
10. To override rates from the applicable exchange rate source, see Enter Fixed Exchange Rates.
11. To reorder the QP lines, right-click a QP line and select Move Up or Move Down from the menu.
Click Save.
Note: If the error "Contract Terms: Quotation pricing does not contain left over amount (0%)." displays, it means that 100% of the pricing has not been defined; that is, not all the mass has been considered.