Despatch Order Splitting
Note: Splitting a despatch order is not related to Split Parent Despatch Orders functionality.
Use Cases for Despatch Order Splitting
Possible scenarios for splitting a despatch order include:
- A shipment has been loaded but needs to be split so that smaller quantities can be invoiced with different premiums.
- Part of a planned delivery is postponed to a future month.
- A longer term contract has planned deliveries, but the customer later requests a smaller shipment size.
- Sampling indicates that the quality of the despatched material is not homogeneous and a request has been made to invoice some lots separately.
- A customer has reached their credit limit and part of the delivery needs be invoiced with different payment terms.
- Part of a shipment needs to be refinanced with a different bank.
Applicable Despatch Orders for Splitting
Only despatch orders with a selectable (but not initial) status can be split. The despatch order may have:
- Linked despatch orders, that is, the despatch order is the source despatch order of the link(s)
- Loading or unloading bulk transactions or discrete unit movements
A despatch order cannot be split if it:
- Is a linked despatch order
- Is a parent despatch order (PDO) or child despatch order (CDO)
- Has any associated samples
Whether the despatch order has contract term overrides, or if it has been invoiced, hedged or traded has no effect on whether the despatch order can be split.
Required Quantities
When you split a despatch order, the original despatch order continues to exist, but with a smaller required quantity. You can create as many split despatch orders as required, and you must specify the required quantity for each split despatch order. However, the total required quantity must be the same as the original required quantity, and the required quantity of the original despatch order must be greater than zero.
Copied Information
The split despatch orders have the same information as the original despatch order on the following tabs:
- Details—Except for the Required Quantity, Final Quantity and Final Dry Quantity.
- Specification
- Status
Trades
If the original despatch order was traded, MineMarket suggests how that traded quantity could be distributed among the despatch orders. If the original despatch order was in multiple trades, MineMarket suggests a distribution to the split despatch orders.
You can edit the distribution of the traded quantities, and MineMarket creates the new trades as required. MineMarket renames new trades when the despatch order splitting is finished.
Example: Splitting a despatch order that has one trade
Purchase_DO1:
- Has a required quantity of 500 mt
- 200 mt are allocated to Trade_01 with Sales_DO1
- 300 mt are allocated to the MTM
Purchase_DO1 is split into 3 despatch orders. The new despatch orders have a required quantity of 150 mt. The suggested trade quantity distribution is:
| Name | Required Quantity | Trade | Traded With | Traded Quantity |
|---|---|---|---|---|
| Purchase_DO1 | 200.00 | MTM_01 | MTM | 200.00 |
| Purchase_DO1_1 | 150.00 | Trade_01 | Sales_DO1 | 150.00 |
| MTM_01 | MTM | 0.00 | ||
| Purchase_DO1_2 | 150.00 | Trade_01 | Sales_DO1 | 50.00 |
| MTM_01 | MTM | 100.00 |
Example: Splitting a despatch order that has two trades
Purchase_DO2:
- Has a required quantity of 500 mt
- 200 mt are allocated to Trade02 with Sales_DO2
- 200 mt are allocated to Trade03 with Sales_DO3
- 100 mt are allocated to the MTM
Purchase_DO2 is split into 3 despatch orders. The new despatch orders have a required quantity of 150 mt. The suggested trade quantity distribution is:
| Name | Required Quantity | Trade | Traded With | Traded Quantity |
|---|---|---|---|---|
| Purchase_DO2 | 200.00 | Trade_02 | Sales_DO3 | 100.00 |
| MTM_02 | MTM | 100.00 | ||
| Purchase_DO2_1 | 150.00 | Trade_02 | Sales_DO2 | 150.00 |
| MTM_02 | MTM | 0.00 | ||
| Purchase_DO2_2 | 150.00 | Trade_02 | Sales_DO2 | 50.00 |
| Trade_03 | Sales_DO3 | 100.00 | ||
| MTM_02 | MTM | 0.00 |
The first trade is distributed to the first new despatch order, but there is 50 mt left over, which goes to the next new despatch order. The second trade goes to the remaining quantity of the second despatch order, but there is 100 mt left over, which stays with the original despatch order.
Pricing
MineMarket suggests the same pro-rata split across the quotation periods (QPs) that are applicable to the original despatch order. If the despatch order has analyte pricing, there is a Pricing page for each payable analyte.
You can edit the quantity assigned to each QP line for each despatch order; however, the total amount for each QP cannot change.
When the original despatch order is split, MineMarket creates the required pricing lines on the Contract Term Overrides tab of each despatch order.
See Contract Pricing.
Example: Despatch order with three QPs
Suggested:
| Name | Required Quantity (t) | QP1 (Jan) | QP2 (Feb) | QP3 (Mar) | Weighted Average Price |
|---|---|---|---|---|---|
| Sales_DO3 | 120 | 122.00 | 110.00 | 105.00 | 115.17 |
| Priced Quantity (t) | 60 | 40 | 20 | ||
| Sales_DO3_1 | 60 | 122.00 | 110.00 | 105.00 | 115.67 |
| Priced Quantity (t) | 30 | 20 | 10 |
Edited:
| Name | Required Quantity (t) | QP1 (Jan) | QP2 (Feb) | QP3 (Mar) | Weighted Average Price |
|---|---|---|---|---|---|
| Sales_DO3 | 120 | 122.00 | 110.00 | 105.00 | 113.75 |
| Priced Quantity (t) | 50 | 40 | 30 | ||
| Sales_DO3_1 | 60 | 122.00 | 110.00 | 105.00 | 118.00 |
| Priced Quantity (t) | 40 | 20 | 0 |
Hedging
If the original despatch order was hedged, MineMarket suggests a pro-rata split of the total hedging allocation. Allocations to both locked and unlocked hedge positions are included in the calculations. If the despatch order has analyte pricing, there is a Hedging page for each payable analyte.
You can edit the hedged quantity for each despatch order. MineMarket creates or updates the hedging allocations as required. If the original despatch order has allocations to multiple hedge positions, MineMarket splits the allocations in the same proportion.
MineMarket does not create new hedge positions.
See Hedging and Create a Physical Commodity Hedging Allocation.
Example: Splitting a despatch order with allocations to two hedge positions
Purchase_DO4 has the following hedging allocations for gold:
- Futures_01—100 t oz
- Futures_02—200 t oz
The despatch order is split into two despatch orders with the same required quantity. MineMarket suggests the following split of the hedging allocations.
| Name | Hedged | UOM |
|---|---|---|
| Purchase_DO4 | 150 | t oz |
| Purchase_DO4_1 | 150 | t oz |
If this split is accepted, MineMarket creates the following hedging allocations:
- Purchase_DO4:
- Futures_01—50 t oz
- Futures_02—100 t oz
- Purchase_DO4_1:
- Futures_01—50 t oz
- Futures_02—100 t oz
Costs and Service Charges
Most costs and service charges are duplicated to the split despatch orders, except those with a rate detail basis of Fixed Amount Per Despatch Order or Time. which are split pro-rata.
Any rate details applicable to the original despatch order are considered: whether configured in the sales or purchase contract; on the Service Charges tab or Contract Term Overrides tab of the despatch order; or on the Service Charges tab of a despatch.
When the original despatch order is split, MineMarket creates the required costs and service charges on the Contract Term Overrides tab of each despatch order.
See Costs and Service Charges.
Invoicing
Any invoices for the original despatch order are unchanged because invoices sent to accounting systems must remain the same (for example, with the same invoice reference and amount).
MineMarket creates a 'split accrual' invoice of the invoice iteration type that is configured with Use For Split Accruals. See Set up Invoice Iteration Types.
The split accrual invoice contains the following journals:
- A journal reversing the journals of the original sales or purchase invoice
- One journal per split despatch order—The purpose of these journals is to reallocate the invoice amounts and quantities to the new split despatch orders.
These journals created for the split accrual invoice must impact the same accounts as the journals of the original invoice, disregarding the chart of accounts configuration (which could change between the first posting of the journals and the splitting of the despatch order).
The split accrual invoice has no instalment lines. The instalment lines are retained on the original invoice. However, the split accrual invoice has a specific invoice line to keep track of what has been already paid on the original invoice.
The Invoice Date of the split accrual invoice is the same as the invoice date of the original invoice.
The Journal Date depends on the accounting period of the invoice date:
- If the accounting period is open, the journal date is the same as the invoice date.
- If the accounting period is closed, the journal date is the first day of the earliest open accounting period.
If any split despatch order is later adjusted (for example, if the required quantity is changed), and the original invoice is revaluated, MineMarket creates revaluation journals to adjust the split accrual invoice journals.
If you revert an original sales or purchase invoice for which journals have already been sent to an accounting system, you should also revert the split accrual invoice.
See Invoices, Journal Creation for Invoices and Invoice Revaluation.
Example: Journals in a split accrual invoice
The invoice for Sales_DO5 has an invoiced amount of USD1000 and has the following journal.
| Journal | Account Type | Account | Debit | Credit | DO |
|---|---|---|---|---|---|
| Original | Customer | 411000 | 900 | Sales_DO5 | |
| Ledger | 411MM | 100 | Sales_DO5 | ||
| Ledger | 701000 | 1000 | Sales_DO5 |
When the despatch order is split into 2 despatch orders with a 70/30 split, the split accrual invoice has the following journals.
| Journal | Account Type | Account | Debit | Credit | DO |
|---|---|---|---|---|---|
| Reversal | Customer | 411000 | 900 | Sales_DO5 | |
| Ledger | 411MM | 100 | Sales_DO5 | ||
| Ledger | 701000 | 1000 | Sales_DO5 | ||
| Original | Customer | 411000 | 630 | Sales_DO5 | |
| Ledger | 411MM | 70 | Sales_DO5 | ||
| Ledger | 701000 | 700 | Sales_DO5 | ||
| Split_1 | Customer | 411000 | 270 | Sales_DO5_1 | |
| Ledger | 411MM | 30 | Sales_DO5_1 | ||
| Ledger | 701000 | 300 | Sales_DO5_1 |
Linked Despatch Orders
If the original despatch order is a source despatch order, MineMarket:
- Adjusts the linked despatch order of the original despatch order as required.
- Creates linked despatch orders for the split despatch orders.
