Deductions

A deduction is a payable analyte charge configured in a set of contract terms.

The deduction can be entered as a fixed, calculated or tiered value, or determined from a premium matrix. The deduction impacts the payable analyte grade. The configuration of the resulting charge value includes settings for rounding of decimal places, minimum and maximum values, and how the deduction affects invoices. For example, for a contract with product pricing, the deduction may display on the invoice without affecting the total invoice value, or may be included as a separate line item, or included in the calculation of the revenue line item.

Deduction Examples

Multiple deductions can be specified for a payable analyte to allow for conditional deductions.

Example: If a despatch is destined for a port in Asia, apply a 95% deduction, but if it goes elsewhere, then apply a 97.5% deduction.

When the invoice is calculated, if multiple deductions are applicable, they are aggregated.

Example: For a payable analyte of molybdenum, tiered deductions may be based on different analytes. Multiple deductions may be applicable:

• If Pb >0.06% and <0.065%, deduct 0.5% from the payable analyte grade for Mo.
• If As >0.025% and <0.1%, deduct 0.25% from the payable analyte grade for Mo.
• If P >0.06% and <0.08%, deduct 0.25% from the payable analyte grade for Mo.

Note: If the Payable Evaluation Method for the payable analyte is By Payable Mass, a deduction cannot be specified.