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)
- A data link; that is, the despatch order is a source or target despatch order
- 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 (However, if the despatch order is loaded with packages, the packages may have samples.)
- Has any unlocked sales, purchase, service or freight invoices
- Is waiting for processing by the MineMarket Marketing Service, or if a despatch order to which it is connected via a data link is waiting for processing. (The split can be performed when processing is complete; that is, when the Processing Status on the despatch order header is Processed. See Despatch Order Snapshots.)
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 Priced quantity assigned to each QP line for each despatch order, including entering negative values or clearing values in the last QP column to allow for later variations; 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. Any final pricing previously configured as an override is replaced with the values specified during the splitting.
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 service and freight 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.
Finance costs of any rate detail basis have the Loan Amount split pro-rata. The Value of finance costs with a rate detail basis of Fixed Amount Per Despatch Order is also split pro-rata.
Only rate details configured on or copied to the Service Charges tab of the original despatch order are considered. Rate details configured in the sales or purchase contract; on the Service Charges tab of a despatch; or on the Contract Term Overrides tab of the despatch order are not considered.
When the original despatch order is split, MineMarket creates the required costs and service charges on the Service Charges » Costs tab of each despatch order.
See Costs and Service Charges.
Invoicing
Any invoices for the original despatch order are unchanged.
MineMarket creates 'split accrual' invoice(s) of the invoice type that is configured with Use For Split Accruals. See Set up Invoice Types.
MineMarket splits the invoice instalment due amount of the original despatch total. This allows for the next invoice to consider previous due amounts. However, the split accrual invoice does not have any invoice instalment of its own.
The Invoice Date of a split accrual invoice is the same as the invoice date of the original invoice.
MineMarket automatically locks split accrual invoices.
If you revert an original sales or purchase invoice, MineMarket reverts the split accrual invoice.
See Invoices.
Invoice Journals
Note: The Journal Reversal Method must be Full Reversal. Incremental journals do not work with despatch order splitting. See Journal Creation for Invoices.
The split accrual invoice for sales/purchase 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.
You can split only the sales or purchase invoice, or select to also split any service or freight invoices for the despatch order. For each latest service or freight invoice, the split accrual invoice contains the following journals:
- A journal reversing the journals of the original service or freight 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.
Journals created for the split accrual invoice(s) must impact the same accounts as the journals of the original invoice(s), disregarding the chart of accounts configuration (which could change between the first posting of the journals and the splitting of the despatch order).
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. See Invoice Revaluation.
Example: Journals in a split accrual invoice
The invoice for Sales_DO5 has an invoiced amount of USD 1000 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 of a linked contract or manual link, MineMarket:
- Creates linked despatch orders for the split despatch orders.
- Adjusts the linked despatch order of the original despatch order as required.
See Linked Contracts.
Data Links
If the original despatch order is a source despatch order of a data link, MineMarket:
- Creates target despatch orders for the split despatch orders.
- Adjusts the required quantity of the original target despatch order as required
MineMarket copies the data link configuration to the split despatch orders. This means that if the original despatch order is a target despatch order of a data link, the split despatch orders all have a data link to the source despatch order.
See Despatch Order Data Links.
Examples: Splitting source despatch orders
- Purchase_DO1 (required quantity: 100 mt) is the source despatch order for Sales_DO1 (required quantity: 100 mt). The data link has Weights And Assays set to Yes. Purchase_DO1 is split 60/40. After the split:
- Purchase_DO1 (required quantity: 60 mt) is the source despatch order for Sales_DO1 (required quantity: 60 mt).
- Purchase_DO1_1 (required quantity: 40 mt) is the source despatch order for Sales_DO1_1 (required quantity: 40 mt).
- Purchase_DO2 (required quantity: 100 mt) is the source despatch order for Sales_DO2 (required quantity: 90 mt). The data link has Weights And Assays set to No. Purchase_DO2 is split 60/40. After the split:
- Purchase_DO2 (required quantity: 60 mt) is the source despatch order for Sales_DO2 (required quantity: 54 mt).
- Purchase_DO2_1 (required quantity: 40 mt) is the source despatch order for Sales_DO2_1 (required quantity: 36 mt).
Note: Even though Weights And Assays is No, MineMarket splits the quantity of the original target despatch order Sales_DO2 pro rata across Sales_DO2 and Sales_DO2_1.
- Purchase_DO3 (required quantity: 100 mt) is the source despatch order for Sales_DO3 (required quantity: 90 mt). The data link has Weights And Assays set to Prorated By Traded Quantity. Purchase_DO3 is split 60/40. After the split:
- Purchase_DO3 (required quantity: 60 mt) is the source despatch order for Sales_DO3 (required quantity: 54 mt).
- Purchase_DO3_1 (required quantity: 40 mt) is the source despatch order for Sales_DO3_1 (required quantity: 36 mt).
Examples: Splitting target despatch orders
- Purchase_DO4 (required quantity: 100 mt) is the source despatch order for Sales_DO4 (required quantity: 100 mt). The data link has Weights And Assays set to Yes. Sales_DO4 is split 60/40. After the split, Purchase_DO4 (required quantity: 100 mt) is the source despatch order for Sales_DO4 (required quantity: 100 mt) and Sales_DO4_1 (required quantity: 100 mt).
Note: Because Weights And Assays is Yes, when the snapshots are processed, all these despatch orders have a required quantity of 100 mt inherited from Purchase_DO4. Splitting the target despatch order of a data link with Weights And Assays is Yes may therefore not be a desirable scenario.
- Purchase_DO5 (required quantity: 100 mt) is the source despatch order for Sales_DO5 (required quantity: 90 mt). The data link has Weights And Assays set to No. Sales_DO5 is split 55/35. After the split, Purchase_DO5 (required quantity: 100 mt) is the source despatch order for Sales_DO5 (required quantity: 55 mt) and Sales_DO1_1 (required quantity: 35 mt).
- Purchase_DO6 (required quantity: 100 mt) is the source despatch order for Sales_DO6 (required quantity: 90 mt). The data link has Weights And Assays set to Prorated By Traded Quantity. Sales_DO6 is split 55/35. After the split, Purchase_DO6 (required quantity: 100 mt) is the source despatch order for Sales_DO6 (required quantity: 55 mt) and Sales_DO1_6 (required quantity: 35 mt).
