Costs and Service Charges

• Costs and Service Charges
• • Service Charges
  • Copying and Pasting of Service Charges
  • Costs
  • Budgeted Costs
  • Copying and Pasting of Costs and Budgeted Costs
  • Copying and Pasting of Service Charges Nodes in Contract Terms
  • Cost and Service Charge Mirroring
  • Cost and Service Charge Reinvoicing
  • Invoicing of Costs and Service Charges
  • • Costs
    • Service Charges
    • Costs and Service Charges
  • Overriding of Costs and Service Charges
  • Budgeted Costs, Costs and Service Charges in Snapshots and Trade Profit and Loss
  • Display of Costs and Service Charges
  • Video

Service Charges

A service charge in MineMarket is a charge for the provision of a service, freight or finance. The service charge links a despatch order or despatch to a contract rate configured in a service, freight or finance contract.

For service and freight contracts, each contract rate has rate periods. The service charge is only applicable if the service reference date (for example, the bill of lading date) is within a rate period. Each rate period can have multiple rate details. The rate details define the pricing for the service charge. For finance contracts, each contract rate can have multiple rate details. The rate details define the pricing for the service charge. There are many types of rate detail basis for calculating the value of the service charge; for example, a fixed amount, by wet mass, by a percentage of invoice value, or by a number of packages.

See Service, Freight and Finance Contracts.

If service charges are added to a set of contract terms, the service charges apply to all despatch orders with that set of contract terms. The rate details (defined in the service, freight or finance contract) can be overridden, either in the contract terms, or on the Contract Term Overrides tab of an individual despatch order. Service charges can also be added directly to despatch orders (on the Service Charges tab), to despatches, or to despatch templates. However, service charges linked to finance contracts can only be added to purchase contracts, contract templates and purchase despatch orders.

Service charges are known in some businesses as 'sundry charges'.

Copying and Pasting of Service Charges

A single service charge can be copied and pasted between sets of contract terms and the Service Charges tab of despatch orders, despatches or despatch templates. However, a service charge based on a finance contract can only be pasted in a purchase contract, contract template and or purchase despatch order.

If the rate details of the service charge have been overridden, the overrides are also copied and pasted.

As applicable, right-clicking a service charge in a Service Charges table displays the Copy and Paste menu options. This copying is not the same as the Copy To Clipboard menu option, which copies the entire table to the clipboard, so that the table can be pasted into another application, such as Excel.

Costs

A cost in MineMarket is a charge for the provision of a service, freight or finance.

In some contexts; for example, in despatch order snapshots, 'cost' refers to any line item that would be invoiced with a service or freight invoice.

The term 'cost' is sometimes used specifically for a 'simplified cost', as opposed to a 'service charge'. A service charge links a despatch order or despatch to a contract rate configured in a service, freight or finance contract. However, a (simplified) cost does not link to a service, freight or finance contract, neither are the rate details only applicable in a rate period. Each cost has a provider and an activity, and may have one or more rate details. Like for service charges, each rate detail has a rate detail basis, on which the value of the cost is calculated. Costs cannot be tiered, or based on demurrage/despatch.

You can add taxes to these simplified costs. The tax configuration (as specified in the Tax Editor) cannot be edited for the cost. The reference date for tax rates is the bill of lading date, or else the first available date out of ATD at origin, ETD at origin or planned despatch date. (Snapshots, revaluations and non-final invoices use the bill of lading date, or else the first available date out of: ATD at origin, ETD at origin, ATA at origin, ETA at origin, the quota end date, or planned despatch date.)

(Simplified) costs can be added on the Costs tab of the Service Charges node of sales and purchase contract terms; the Service Charges node of contract templates; the Costs tab of repurchase contracts; and the Service Charges tab of any despatch order, despatch or despatch template. However, finance costs can only be added to purchase contracts, contract templates, repurchase contracts, and purchase despatch orders. Cost Templates can be used to simplify the addition of costs.

A setting on the Sales and Marketing tab of the Options screen controls whether costs must have a unique combination of the Service Type, Activity, Name and Rate Detail Basis.

Budgeted Costs

Budgeted costs are used to budget for costs of service, freight or finance before the provider of that service, freight or finance is known.

Budgeted costs do not link to service, freight or finance contracts, neither are the rate details only applicable in a rate period. Each cost has an activity, and may have one or more rate details. Like for service charges, each rate detail has a rate detail basis, on which the value of the cost is calculated. Budgeted costs cannot be tiered, or based on demurrage/despatch.

Budgeted costs are used to budget for costs of service, freight or finance before the provider of that service, freight or finance is known.

Budgeted costs do not link to service, freight or finance contracts, neither are the rate details only applicable in a rate period. Each cost has an activity, and may have one or more rate details. Like for service charges, each rate detail has a rate detail basis, on which the value of the cost is calculated. Budgeted costs cannot be tiered, or based on demurrage/despatch.

You can add taxes to budgeted costs.

Budgeted costs can be added in the Budgeted Costs table of the Service Charges node of sales and purchase contract terms and in contract templates. Budgeted costs cannot be added to despatch orders or despatches. Cost templates can be used to simplify the addition of budgeted costs.

A setting on the Sales and Marketing tab of the Options screen controls whether budgeted costs must have a unique combination of the Service Type, Activity, Name and Rate Detail Basis.

Copying and Pasting of Costs and Budgeted Costs

Costs (including costs in cost templates) and budgeted costs can be copied from one MineMarket object to another. A budgeted cost can also be pasted as a cost, and likewise a cost can be pasted as a budgeted cost. However, a finance cost cannot be copied to a sales contract or sales despatch order.

Both costs and budgeted costs can be pasted as a rate detail in a service, freight or finance contract if the service type matches the cost. For example, a freight cost can be copied to a freight contract but not to a service contract.

If you copy a cost or budgeted cost with a tax to create a rate detail in a service, freight or finance contract, the tax displays on the Contract Taxes tab and can be edited. See Specify a Tax for a Service, Freight or Finance Contract.

The Mirror Cost property is not copied. That is, if you copy a cost that has Mirror Cost checked, the pasted cost has Mirror Cost unchecked.

As applicable, right-clicking a cost or budgeted cost or in a Costs table displays the Copy and Paste menu options. Multiple budgeted costs can be selected for copying together if required. If multiple costs are grouped together because the costs have the same provider and activity, the group of costs is copied together. After pasting the group of costs, individual costs can be deleted if required.

This copying is not the same as the Copy To Clipboard menu option, which copies the entire table to the clipboard, so that the table can be pasted into another application, such as Excel.

Copying and Pasting of Service Charges Nodes in Contract Terms

You can copy all the budgeted costs, costs and service charges in a Service Charges node. When you paste them to another Service Charges node, they are added to any budgeted costs, costs and service charges already in the destination node. The source or destination node can be in any set of contract terms in a sales or purchase contract, or in contract term overrides in a despatch order. However, finance budgeted costs, costs and service charges can only be copied to contract terms in a purchase contract or a purchase despatch order.

If the source node is in contract term overrides in a despatch order, Override Budgeted Costs must be checked for the budgeted costs to be copied. Likewise, Override Service Charges must be checked for the costs or service charges to be copied. If the destination node is in contract term overrides in a despatch order, Override Budgeted Costs must be checked for the budgeted costs to be pasted and Override Service Charges must be checked for the costs or service charges to be pasted.

As applicable, right-clicking a Service Charges node displays the Copy and Paste menu options.

Cost and Service Charge Mirroring

Cost and service charge rate details can be mirrored from a source despatch order to its target despatch order(s). See Despatch Order Data Links.

Cost and Service Charge Reinvoicing

Reinvoicing a (cost or service charge) rate detail in a despatch order creates a read-only cost in the same despatch order with:

• The Organisation of the despatch order as the Provider of the reinvoiced cost
• The Default Freight/Finance/Service Activity (if specified on the Options screen) as the Activity of the reinvoiced cost, or else the Activity of the original rate detail
• The Value inverted

See Reinvoice Costs and Service Charges for a Despatch Order.

If the Invoice Scope of the cost is Freight/Services Invoice or All, a separate service or freight invoice for the reinvoiced cost can be raised via the Invoice Explorer.

A setting in the sales or purchase contract controls whether cost and service charge rate details are reinvoiced by default. See Specify Invoice Settings for a Sales or Purchase Contract.

Reinvoiced costs can be mirrored in a despatch order data link.

Invoicing of Costs and Service Charges

Note: Budgeted costs are not included in invoices.

Costs

Depending on the Invoice Scope, costs may be included in sales or purchase invoices, or invoiced separately using service (for service or finance costs) or freight invoices. For service and freight invoices, default payment terms can be configured for each organisation that provides the service, freight or finance. If the organisation does not have default payment terms, the default payment terms of the company are used. See Specify Default Payment Terms for an Organisation or Company.

Costs can be invoiced if associated with a despatch (either because the cost is directly on the despatch, or the despatch order is on the despatch), or invoiced based on the despatch order.

Cost rate details can be overridden in service and freight invoices.

When searching for despatch orders to include in a freight or service-related invoice, if there are only mirrored or reinvoiced costs for the selected Provider, the despatch order displays for selection independently from any associated despatches.

Service Charges

Depending on the Invoice Scope, service charges may be included in sales or purchase invoices, or invoiced separately using service (for service or finance contracts) or freight invoices. Service charges can also be displayed on sales or purchase invoices without affecting the invoice value. If invoiced separately, the payment terms of the applicable service or freight contract apply. Payment terms cannot be specified for finance contracts. When a service charge for a finance rate is invoiced separately, the default payment terms of the (bank) organisation are used.

Costs and Service Charges

When creating a freight or service-related invoice, the search for despatch orders returns combinations of despatches and their despatch orders, as well as despatch orders. In most situations, a freight or service invoice is based on a combination of a despatch and despatch order.

If there are only mirrored or reinvoiced costs for the selected Provider, the despatch order only displays for selection independently from any associated despatches.

Each required rate detail must be selected in the Service Rates table of the Despatch Orders tab. Service charge rate details that display as costs on the snapshot of the relevant despatch order are preselected. Cost rate details are not preselected.

Overriding of Costs and Service Charges

If the same cost or service charge has been configured in multiple places, when the despatch order snapshot or invoice is calculated, a rate on the despatch has highest precedence, followed by a rate configured on the Service Charges tab of the despatch order, followed by a rate in the applicable set of contract terms.

When determining whether a cost or service charge has been overridden, MineMarket first searches for a cost or service charge with the same Service Type and Activity. If any of the rate details (in that cost or service charge) have the same Name and Type, there is a match. The whole cost or service charge is overridden, even if there are additional rate details with a different name or type. For example, in the contract terms, a freight cost for insurance (the activity) has two rate details with names RateDetailA and RateDetailB. If this freight cost for insurance is also configured on the despatch, but only with the rate detail called RateDetailA:

• Both instances of the rate detail called RateDetailA display on the Service Charges » Costs tab. The rate detail configured on the despatch has an impact and is included in the snapshot. The rate retail configured in the contract terms has been overridden and hence has 0 impact and is not included in the snapshot.
• The rate detail called RateDetailB displays on the Service Charges » Costs tab with 0 impact and is not included in the snapshot.

A setting on the Options screen can simplify overriding of contractual cost rate details in despatch orders. If Copy Contract Costs To Despatch Orders is checked, each cost rate detail (configured in the applicable set of contract terms) is copied to the Service Charges » Costs tab of each new Despatch Order. These copied rate details can be edited, as if they had been created as costs directly on the despatch order. See Specify Sales and Marketing Settings.

Important: If rate details are overridden on the Contract Term Overrides tab of the despatch order, only those rate details are included in snapshot and invoice calculations. Any costs and service charges added on the Service Charges tab of the despatch order or on the despatch are ignored.

Budgeted Costs, Costs and Service Charges in Snapshots and Trade Profit and Loss

Budgeted costs, costs and service charges are included in despatch order and quota snapshots, and in the profit and loss of trades. Budgeted costs are considered until they are replaced with a cost or service charge of the same Service Type, Activity, Name, Rate Detail Basis and Type:

• If a budgeted cost has no matching cost or service charge, the budgeted cost applies.
• If a time-based budgeted cost has a matching cost or service charge and the cost or service charge has a shorter duration than the budgeted cost, the cost or service charge applies, and the budgeted cost applies for the remaining duration. For example, if a budgeted cost has a duration of 60 days, but the matching cost has a duration of 35 days, the budgeted cost still applies with a duration of 25 days.
• If a time-based budgeted cost has a matching cost or service charge and the cost or service charge has an equal or longer duration than the budgeted cost, the cost or service charge applies.
• If a non-time-based budgeted cost has a matching cost or service charge, the cost or service charge applies.
• If a cost or service charge has no matching budgeted cost, the cost or service charge applies.

The matching cost or service charge can be in the applicable set of contract terms, on the despatch order, or on the despatch.

Display of Costs and Service Charges

The Service Charges » Costs tab of despatch orders (both on the Despatch Order screen and when viewing it in its Sales Contract or Purchase Contract) displays:

• Read-only cost and service charge rate details configured in the applicable set of contract terms (if Copy Contract Costs To Despatch Orders is unchecked on the Options screen).
• Editable cost and service charge rate details copied from the applicable set of contract terms (if Copy Contract Costs To Despatch Orders is checked on the Options screen).
• Read-only cost and service charge rate details configured on the Service Charges tab of any associated despatch.
• Editable cost and service charge rate details configured on the despatch order.
• Cost and service charge rate details mirrored from the source despatch order of any data link. Mirrored rate details display some fields in blue text.
• Reinvoiced cost and service charge rate details. Reinvoiced rate details display some fields in green text.

However, rate details that are overridden on the Contract Term Overrides tab of the despatch order do not display on the Service Charges » Costs tab of the despatch order.

The rate details are grouped by Service Type; that is, Freight, Service and Finance Service.

Whether rate details can be edited is also controlled by despatch order status and security rights.

The Rate Source is a read-only column that identifies where a rate detail was configured, such as Contract, Quota, Despatch or the hyperlinked name of a source despatch order. If the Rate Source is blank, the rate detail was configured on or copied to the Service Charges » Costs tab or Service Charges » Service Charges tab of the current despatch order. For a service charge rate detail, the hyperlinked name of the base service contract or freight contract displays in the Contract column.

The Impact is a read-only column that displays the monetary impact of the rate detail on the despatch order snapshot. See Despatch Order Snapshots.

• TBD in red text indicates that the impact has not yet been calculated by the MineMarket Marketing Service.
• 0 in red text indicates that the rate detail has been overridden. If you click that cell, MineMarket highlights in green the rate or rate detail that is overriding the current rate detail.
• Any other value in red text indicates that the rate detail configuration has changed, and the that impact needs to be recalculated by the MineMarket Marketing Service.

Video

A Datamine consultant recorded this video about configuring and invoicing service charges in MineMarket.