Sales and Purchase Contract Terms

Contract terms are applicable to sales and purchase contracts. A set of contract terms is a structure that contains all contract information required to determine pricing during invoice generation. That is, it includes all the pricing, the type of material being contracted, additional charges and taxes, delivery terms, contract start and end dates, currency, and applicable invoice types.

Sets of contract terms can be configured at the contract, contract product, or contract quota level. Many contract terms can be overridden for a specific despatch order if required.

See Sales and Purchase Contracts.

There can be more than one set of contract terms defined for a contract as long as the contract term dates do not overlap, or if they do overlap, that a different set of delivery terms is specified.

Contract terms can be copied from one contract to another.

Contract Pricing

Contract pricing defines how the product(s) in a contract are priced. In MineMarket, contract pricing can be based on the product or payable analytes, and is entered as quotation pricing (QP) lines within QP headers.

Contract terms can also include contract charges, service charges, taxes, specification of payment terms, linking to products in other contracts, the setting up of assay exchange settlement rules, the entering of freight parities, the specification of the types of invoices to be issued, and the entering of demurrage specifications.

See Contract Pricing.

Payable Analytes

A payable analyte is an analyte (element) within a material that is being purchased or sold, for which specific pricing is configured in the contract terms. Analyte pricing is used for materials like base metal concentrates and semi-refined metals and iron ore, when the material is priced based on the elements in it. The quantities of specific payable analytes in the product determine the price of the product as a whole. For example, for copper or zinc concentrates, the standard practice is not only to pay for the copper or zinc content, but also for the trace amounts of gold and silver. A higher concentration of the elements returns a higher price. These elements are configured as payable analytes.

Deductions, payable percentages, price sharing, price participation and refining charges can be entered for payable analytes. Fixed charges, penalties/bonuses and premiums can also be entered specifically for a payable analyte rather than for the total product mass.

Applicability and Overriding of Contract Terms

There are multiple levels of contract terms to consider for pricing:

  1. Contract level
  2. Product level, which override the contract terms at the contract level
  3. Quota level, which override the contract terms at the product or contract levels
  4. Despatch order level (Contract Term Override field on the Details tab)
  5. Despatch order level (Contract Term Overrides tab), which override the contract terms at the quota, product or contract levels

Certain properties can be defined at the despatch order level that supersede or override those on the quota or contract product level (for example, the required quantity or the specification). The despatch order does not have a full set of contract terms of its own, but uses the most relevant contract terms at the time of invoicing, from the quota, contract product or contract. However, quotation pricing, assay rules, tolling details, invoice fields, costs, service charges and demurrage/despatch conditions can be overridden for an individual despatch order. Additional contract charges can also be specified for an individual despatch order.

Each contract has a Contract Term Reference Date. This date is calculated for each despatch order and used to determine whether a despatch order falls within the date range of a set of contract terms. If the despatch order's contract term reference date matches multiple sets of contract terms at a given level (quota, contract product, or contract), then the Delivery Term of the despatch order is used to determine which set of contract terms is relevant.

However, if a Contract Term Override is specified on the Details tab of a despatch order, MineMarket uses that contract term, irrespective of the reference date or delivery term.

Decimals and Rounding

Rounding rules are applied to the invoice process by specifying the number of decimal places for any of the concepts, and are editable in context of each concept.

Videos

A Datamine consultant recorded this video about assay rules in MineMarket.

A Datamine consultant recorded this video about demurrage and despatch in MineMarket.