Assign a Set of Mark-To-Market Terms to a Sales or Purchase Contract

Security Note: You need the Allow contract maintenance security right in the Contracts domain security rights group for this activity.

Activity Steps

  1. Open the Sales Contract or Purchase Contract.
  2. To specify default mark-to-market configuration for the contract:
    1. Select the Contract Settings node.
    2. Click the ellipsis (...) next to Mark To Market.

      The Mark To Market Search displays.

    3. Enter the following search criteria as required.
      • Delivery Terms—Select from the delivery terms defined in the Delivery Term Editor.
      • Locations—Select from the despatch locations defined on the Supply Chain panel of the Solution Explorer. Despatch locations are rail sidings, truck despatch locations, barge terminals and port locations.
      • Products—Select from the products and brands defined on the Material panel of the Solution Explorer and that match the material type of the contract.

      Note: The Material Type is the material type of the contract.

    4. To include a text string in the search criteria, enter the Search Text. Search By is Mark To Market. Text searches are case-sensitive with SQL databases with a case-sensitive collation and with all Oracle databases.
    5. Click Search or press F3.

      Only sets of mark-to-market terms that match the search criteria and the contract pricing basis, and that are applicable to the default contractual source and destination locations, display in the Mark To Market table.

    6. Check Selected for the required set of mark-to-market terms.
    7. Click OK.
    8. Complete the following fields as required.
      • MTM Location—Default MTM location for quotas within the contract. The MTM location is used as the fulfilment location of the set of mark-to-market terms when calculating the profit and loss of a despatch order in an MTM trade. For sets of MTM terms with delivery terms of FAS, FCA or FOB, the MTM location is considered to be the loading location. For all other delivery terms, the MTM location is considered to be the unloading location. Select from the despatch locations defined on the Supply Chain panel of the Solution Explorer.
      • MTM Reference Date—Default reference date for determining the MTM date. The MTM date is used when calculating the mark-to-market value of a despatch order, in a similar way as the planned despatch date is used when calculating the value of the despatch order. If the MTM date is past, the current date is used. Select from:
        • Bill Of Lading Date—The first available date out of: bill of lading date of the despatch order, ATD at origin, ETD at origin, ATA at origin, ETA at origin, or planned despatch date of the despatch order.
        • Arrival Date At Loading—The first available date out of: ATA at origin, ETA at origin, bill of lading date of the despatch order, or planned despatch date of the despatch order.
        • Arrival Date At Destination—The first available date out of: ATA at destination, ETA at destination, estimated arrival based on the travel and duration time of a route that matches the planned loading and unloading locations or quota contractual source and destination, bill of lading date of the despatch order, or planned despatch date of the despatch order.
        • Planned Despatch Date—The planned despatch date of the despatch order.
        • Start Of Quotation Period (default)—The earliest QP start date of the QP's main analyte.
        • End Of Quotation Period—The latest QP end date of the QP's main analyte.
        • Fixed Date—A date specified on each despatch order.
      • MTM Reference Date Offset—Default number of months or days offset for the mark-to-market reference date. The offset can be a positive or negative number. Not applicable if the MTM Reference Date is Fixed Date.
  3. To specify a set of mark-to-market terms for a contract product:
    1. Expand the Contract Products node.
    2. Select the node for the specific product.
    3. Click the ellipsis (...) next to Mark To Market.
    4. Search for and select the set of mark-to-market terms, as described in step 2.

      Only sets of mark-to-market terms that match the search criteria and are applicable to the product and to the default contractual source and destination locations display in the Mark To Market table.

  4. To specify a set of mark-to-market terms for a quota:
    1. Expand the node for the contract product below the Contract Products node.
    2. Expand the Quotas node.
    3. Select the node for the specific quota.
    4. Click the ellipsis (...) next to Mark To Market.
    5. Search for and select the required set of mark-to-market terms, as described in step 2.

      Only sets of mark-to-market terms that match the search criteria and are applicable to the product and to the contractual source and destination locations of the quota display in the Mark To Market table.

    6. Select the MTM Location if required.

      Default MTM location for despatch orders in the quota. The MTM location is used as the fulfilment location of the set of mark-to-market terms when calculating the profit and loss of a despatch order in an MTM trade.

  5. Update other settings if required:
    1. Select the Contract Settings node.
    2. If Require Contract Approval For Trading is checked in the trading settings, select whether the contract is Approved For Trading. Default: Unchecked.

      Note: If Require Contract Approval For Trading is unchecked on the Trading tab of the Options screen, this Approved For Trading checkbox on sales and purchase contracts is not applicable. See Specify Trading Settings.

      If checked, despatch orders for this contract can be included in trades. If unchecked, despatch orders for this contract do not display in the Trade Explorer, and trades cannot be created from the despatch order's Trading tab.

    3. If the contract is a sales contract, select the point until when to Use Purchase Weights And Assays. Point until when to use purchase weights and assays in snapshots, trade profit and loss (P&L) and invoices of the sales DO. Can be overridden on individual DOs. Select from:
      • Never (default)—The sales DOs use their own weights and assays.
      • Until Realised—The sales DO snapshot has a weight value source of Purchase Quantity and assays value source of Purchase Quality until control has passed for the sales DO.
      • Until Assayed—The sales DO snapshot has a weight value source of Purchase Quantity and assays value source of Purchase Quality until at least one sample result has been entered at the fulfilment location for the sales DO.
      • Until Finalised—The sales DO snapshot has a weight value source of Purchase Quantity and assays value source of Purchase Quality until the assay exchange (if required) is complete, or there is a final assay result for each required analyte for the sales DO.
      • Always—The sales DOs use the weights and assays of the purchase DOs.

      Note: Except for the Never option, if the sales DO is traded with multiple purchase DOs that together meet the minimum required quantity of the sales DO, the weights are aggregated and the weighted average of assays is used. However, if the trade(s) do not yet meet the minimum required quantity of the sales DO, the required quantity and specifications of the sales DO are used.

  6. Click Save.