Tolling Materials to a Toll Account

When materials are tolled, material is moved to a toll account, increasing the toll account's balance.

When the material becomes available in the toll account, the material can be returned to the owner of the toll account or an agreed third party, or priced for sale.

Example:

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

• Purchase contract for copper concentrate. Copper and silver are payable analytes and gold is a tolled analyte within the contract. There is a treatment charge for the copper concentrate and a refining charge for gold.

At the beginning of the month, Company A purchases 50 mt of copper concentrate. Processing the copper concentrate yields:

• 10 mt of copper
• 10,000 t.oz of silver
• 1000 t.oz of gold

The invoice includes the following line items:

• Copper revenue, with the invoice item value calculated using the pricing details specified in the contract
• Silver revenue, with the invoice item value calculated using the pricing details specified in the contract
• Treatment charge based on the 50 mt of copper concentrate
• Refining charge based on the 1000 t.oz of gold
• Gold toll, which displays the quantity of gold that has been credited to the toll account; however, the invoice item value is $0