Understand costs calculation

When handling lot numbers from a specific vendor, the trading company may incur costs associated with those specific lot numbers via item charges. During settlement with vendors for account sale transactions, these costs are deducted from the revenue reported to the vendor. This ensures that the trading company does not bear the costs themselves but rather returns them to the vendor.

The costs section on the Account Sale or Pooling page provides information about the costs allocated to the lot numbers received under a specific purchase line. It is necessary to include these costs in the cost template selected during settlement calculation to display them. Item charges associated with the costs should be included in the cost template to provide accurate insights into the allocated costs.

There are two types of costs:

• Costs (Deducted Revenue)

  • The costs are summarized based on the selected cost template and assigned with the Deduction method field set as Net Revenue.

  • The total sum of these costs is deducted from the Net Revenue field to calculate the Net Net Revenue field value.

  Note

  These costs, which lower the Net Revenue field value, can potentially affect the calculated commission. For more information, see Understand commissions calculation.

• Costs

  • The costs are summarized based on the selected cost template and assigned a deduction method of Account Sale. These costs do not directly impact the revenue and are presented separately.