Trading Profit and Loss Reports
Purpose
When trading, it is important to be able to view the profit or loss of not only individual trades, but also to summarise the profit and loss across trades. For more information, see Trade Profit and Loss.
The purpose of the Profit and Loss report is to create a summary of historical trade profit and loss at a specific point in time; for example, at the end of each month.
Parameters and Scope
Profit and Loss reports are created in profit and loss streams, which define the default parameters for reports within the stream. Reports can be limited to trades for selected companies, districts, organisations or material types. The status of trades, purchase contracts, sales contracts and despatch orders can also be used as parameters for reports.
Each trade is a one-to-one relationship between either:
- A despatch order (DO) and its set of mark-to-market terms
- A purchase DO and a sales DO
Trades between DOs are always included in Profit and Loss reports. Mark-to-market trades can be included in Profit and Loss reports if required.
Individual trades can be excluded from the report totals and journals if required.
Note: Trades that are in a closed status are included in one final Profit and Loss report after being closed. For example, if the Profit and Loss report is run at the end of every month, and Trade-0001 is created in February and closed in March, the trade is included in the Profit and Loss reports for both February and March, but not in April's report.
Configuration and Processing
Trade profit and loss is calculated by the MineMarket Marketing Service. If historical trade profit and loss is correctly displayed on the Trade Explorer, no additional configuration is required to calculate Profit and Loss reports.
Note: Profit and loss reports use data from the latest historical copy of trade profit and loss. Data that has been entered or changed since that latest copying of trade profit and loss is not included in Profit and Loss reports, even though that data is included in P&L summaries on the Trade Explorer and Trade Detail screens and in despatch orders, quotas and contracts.
Currency Conversions
Profit and loss reports display in the currency of each DO in the trade. However, the profit and loss columns display in the trade currency:
- For trades between DOs, the trade currency is the default currency of the purchase contract's district. If the purchase contract does not have a district specified, the system default currency is used.
- For trades between a DO and a set of mark-to-market terms, the trade currency is the default currency of the contract's district, or the system default currency if no district is specified in the contract.
The summary row of totals for each profit and loss column only displays if the data is in a single currency for all trades in the report.
The exchange rate method can be specified per district. See Create a District for a Company. If no district is available, the last known exchange rate is used.
Factoring
A multiplication factor can be entered as a percentage for individual trades in a Profit and Loss report. The factor affects all values in the trade and its profit and loss. If a factor is applied, only that percentage of the values contributes to the journal entries for the trade profit and loss.
Adjustments
The profit or loss of individual line items for a trade in a Profit and Loss report can be adjusted. These adjustments are specific to the Profit and Loss report and do not affect the profit and loss of trades displayed in the Trade Detail.
If adjustments were saved in a Profit and Loss report and a new search is done for trades, adjustments are retained for line items applicable to the trades matching the new search.
If a trade is locked in the Profit and Loss report, adjustments cannot be added, edited or cleared.
If a factor is entered for a trade, adjustments do not appear to be factored, but their contribution to the profit or loss of the trade is factored. MineMarket displays the adjusted value as it was entered, but factors the adjustment in calculations of the profit and loss and the journal entries.
