Create a Set of Mark-To-Market Terms

Security Note: You need the Allow the user to maintain mark-to-market terms security right in the Trading domain security rights group for this activity.

Activity Steps

  1. Open the Mark To Market Explorer.
  2. Right-click in the Mark To Market table and select New from the menu.

    The Mark To Market displays.

  3. Update the following fields as required.
    • Name
    • Delivery Term—Select from the delivery terms defined in the Delivery Term Editor. Default: FOB.
    • Location—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.
    • Comments
    • Product—Select from the products and brands defined on the Material panel of the Solution Explorer. The set of mark-to-market terms is also applicable for any Allowed Transformations of the selected product or brand.
  4. Select the Contract Pricing Basis from:
    • Product Pricing—Used when the entire product is sold and there are qualities on the entire product that determine the pricing, and price adjustments are based on the amount of material received (for example, coal, iron ore, gold).
    • Analyte Pricing—Used when there are specific analytes in the product, and the amount of actual analyte determines the pricing, and price adjustments are based on the analyte grade and the amount of material received (for example, copper or zinc concentrates where a higher concentration returns a higher price).
  5. If the contract pricing basis is Product Pricing, select the MTM Pricing Method. Method for determining the mark-to-market price in trade profit and loss. Select from:
    • Mark To Market—Use the pricing configuration of the set of mark-to-market terms.
    • Physical Configuration—Use the pricing configuration of the despatch order, but determine the quotation period (QP) using the MTM date if required. For example, if the QP is MOS, use the MTM date as the month of shipment.
    • Physical Price—Use the despatch order snapshot's calculated price. Terms related to quotation pricing in the set of mark-to-market terms are not used. Trade profit and loss displays the same product base price for the despatch order and the mark to market.
  6. If the contract pricing basis is Analyte Pricing, select whether to Use Physical Payable Content Configuration. Whether to use the despatch order's applicable contract terms to determine how to calculate the payable content. If checked:
    • Terms related to deductions, payable percentages and payable grade in the set of mark-to-market terms are not used. The payable content of the mark to market is calculated using the applicable terms of the despatch order.
    • On the node for the payable analyte, the following fields are disabled: Payable Evaluation Method, Deduction Method, Evaluation Method, Evaluation Method Invoice Conditions, Invoice Conditions, Payable Grade Decimals, Payable Content Decimals, Payable Grade UOM Override, Payable Grade UOM Override Decimals, Maximum Grade and Minimum Grade.
    • Deductions and payable percentages cannot be configured for the payable analyte.
  7. Update the general contract terms:
    1. Select the Contract Term node.
    2. Specify contract terms for the set of mark-to-market terms in a similar way to configuring a set of contract terms for a contract.
  8. If the contract pricing basis is Product Pricing:
    1. Select the Quotation Pricing node.
    2. Enter quotation pricing for the set of mark-to-market terms in a similar way to entering quotation pricing for a contract.
  9. If the contract pricing basis is Analyte Pricing:
    1. Select the Payable Analytes node.
    2. Specify payable analytes and their pricing (if required) in a similar way to specifying a payable analyte for a contract.
    3. For each payable analyte, select the MTM Pricing Method. Method for determining the mark-to-market price in trade profit and loss. Select from:
      • Mark To Market—Use the pricing configuration for the payable analyte of the set of mark-to-market terms.
      • Physical Configuration—Use the pricing configuration for the payable analyte of the despatch order, but determine the quotation period (QP) using the MTM date if required. For example, if the QP is MOS, use the MTM date as the month of shipment.
      • Physical Price—Use the despatch order snapshot's calculated price for the payable analyte. Terms related to quotation pricing for the payable analyte in the set of mark-to-market terms are not used. Trade profit and loss displays the same revenue price for the payable analyte for the despatch order and the mark to market.
    4. Enter analyte-specific charges as required. See Contract and Payable Analyte Charges.
  10. Enter contract charges if required. See Contract and Payable Analyte Charges.
  11. Enter service charges if required. See Enter a Service Charge for a Set of Contract Terms.
  12. Click Save.