Returning Tolled Materials
In a toll return, material is moved from a toll account, reducing the toll account's balance.
Full Toll Return
In a full 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 Return.
When the despatch order is invoiced, the invoice line item for the tolled material (analyte) has a zero value. Pricing information, such as a quotation period (QP), does not need to be specified for the tolled material (analyte).
If the despatch order quantity is greater than the available material in the toll account, the toll account will go into a negative balance.
In all cases, any contract charges based on payable content will be calculated on the full payable content that is not reduced by the toll return quantity.
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.
- Sales contract with product pricing for gold, with no deductions; however, there is a fixed charge for freight.
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 sales contract) is created for 1000 t.oz of gold with the Toll Option set to Toll Return. When a sales invoice is created, Organisation A will have to pay only the fixed charge for freight. The invoice line item for gold will be $0.
Fixed Quantity Toll Return
In a fixed quantity toll return, the quantity of the tolled material that will be taken from the specified toll account is fixed. The Toll Option is None and a toll return for the fixed quantity is entered in the Toll Return table. This toll return quantity does not need to match the final quantity of the despatch order.
When the despatch order is invoiced, the invoice line item for the toll return quantity has a zero value.
If the fixed quantity toll return is greater than the available material in the toll account, the toll account will go into a negative balance.
If the fixed quantity toll return does not match the final quantity of the despatch order, the difference will be priced and displayed on the invoice. In that case, pricing information, such as a quotation period (QP), needs to be specified, either in the contract, or as an override in the despatch order.
In all cases, any contract charges based on payable content will be calculated on the full payable content that is not reduced by the toll return quantity.
Fixed quantity toll returns can also be used to transfer material from one toll account to another toll account.
Example:
Company B also has a refinery where copper concentrate is processed. Company B has the following contracts with Organisation B:
- Purchase contract with analyte pricing for copper concentrate. Silver is a tolled payable analyte within the contract.
- Sales contract with product pricing for silver, with no deductions; however, there is a fixed charge for freight.
At the beginning of the month, Company B purchases some copper concentrate. After processing the copper concentrate, the toll account belonging to Organisation B has 20,000 t.oz of silver.
At the end of the month, Organisation B wants to purchase 50,000 t.oz of silver from Company B. A despatch order is created for 50,000 t.oz. Because the material in the toll account is already owned by Organisation B, a fixed quantity toll return of 20,000 t.oz is created within the despatch order. This reduces the balance of the toll account to zero, and reduces the accountable metal quantity for the despatch order. When an invoice is created, Organisation B will have to pay for only 30,000 t.oz of silver. However, the fixed charge for freight will be calculated on the total 50,000 t.oz.
