Mark To Market

Mark to market (MTM) is an estimate of the potential market price of a good, service, or asset.

In MineMarket, a set of mark-to-market terms defines the pricing, contract charges and service charges estimated for a product. The set of mark-to-market terms is specific to a set of delivery terms and can be specific to a location.

Each despatch order can be associated with a set of mark-to-market terms for reporting purposes. The mark-to-market value of the despatch order displays in the despatch order snapshot.

If a despatch order is for a purchase contract, the mark to market represents how much the company estimates that it will receive for the materials when they are later sold. If the despatch order is for a sales contract, the mark to market represents the estimation of how much the material will cost to purchase.

A default set of mark-to-market terms can be specified in a sales or purchase contract: at the header level, or for a contract product or quota. The mark-to-market value of a quota displays in the quota snapshot.

Until a despatch order is fully allocated to trades with other despatch orders (see Trades), its unallocated quantity is compared to its set of mark-to-market terms to determine its profit or loss (P&L). The Trade Explorer displays the P&L of these mark-to-market trades.

MTM Date

The MTM date is used when calculating the mark-to-market value of the despatch order, in a similar way as the planned despatch date is used when calculating the value of the despatch order. The MTM date is determined from the MTM reference date plus any offset, as specified on the despatch order. Default MTM date configuration can be specified in the sales or purchase contract.

If the MTM date is past, the current date is used.

MTM Location

The MTM location represents the expected fulfilment location of the 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.

The MTM location is specified in the despatch order. Default MTM locations can be specified in the sales or purchase contract, or in the contract quota.