Pricing Tolled Materials

In a priced toll return, the total quantity of the tolled material for the despatch order is taken from the specified toll account. The Toll Option is Toll Pricing.

When the despatch order is invoiced, the invoice line item for the tolled material is calculated based on the pricing information specified in the contract or overridden in the despatch order.

Example:

Company A has a refinery where copper concentrate is processed. Company A has the following contracts with Organisation A:

• Purchase contract with analyte pricing for copper concentrate. Gold is a tolled payable analyte within the contract.
• Purchase contract with product pricing for gold, with no charges for freight because the gold will be taken from the toll account located at Company A.

At the beginning of the month, Company A purchases some copper concentrate. After processing the copper concentrate, the toll account belonging to Organisation A has 1000 t.oz of gold.

At the end of the month, a despatch order (based on the purchase contract with product pricing for gold) is created for 700 t.oz of gold. The Toll Option is Toll Pricing. When an invoice is created, Company A will pay for the 700 t.oz of gold. The toll account owned by Organisation A will have a balance of 300 t.oz of gold.