Premiums

Premiums are standard for refined metals. Premiums are bonuses that are paid over the price depending on the product that is delivered. A negative premium is a penalty or deduction. Several premiums can be applied to the same product. A premium is a contract charge configured in a set of contract terms.

The premium can be entered as a fixed, calculated or tiered value, or determined from a premium matrix. The premium impacts the invoice value, unit price or payable analyte grade. For premiums that impact the unit price, the resulting charge value is based on a mass, such as the wet mass or unloaded dry mass. The configuration of the resulting charge value includes settings for rounding of decimal places, minimum and maximum values, how the premium is applied, and how the premium affects invoices. For example, for a contract with product pricing, the premium 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.

Premium Examples

• A higher grade material attains a better price.
• Premiums can be based upon the destination port. Although this is like Freight Parities, it is not freight parities. A month quota could contain three shipments, one to Bangkok, one to Ho Chi Minh and one to Hong Kong. If the destinations to use in the destination conditions are Use Actual Only, and the specified destinations match the final quantity location on the despatch order, set when entering fulfilment details for shipments, the premium charge is applied.