Since these two processes split the quantity for different reasons, they can split them in incompatible ways which reach completion at different times:
Example 1:
The goods are 60% priced and a first partial delivery of 25% of the quantity is taking place for which an invoice is needed that requires a final price. This has split the same contract quantity in two different ways:
| • | There are two pricing parts of 60% priced and 40% un-priced. |
| • | There are two logistics parts of 25% to be delivered and 75% unreserved. |
To achieve a final price on the first logistics delivery, the contract needs to be split into two delivery lines with the pricing redistributed, so that the first 25% is fully priced and the remaining 75% is 47% priced.
If a second delivery must be made for 30% of the quantity, this needs to be repeated because a contractual delivery line can only have one pricing process. When the pricing is to be split, the delivery line must be split first. This is done by splitting the delivery line in the Deliveries screen.
In Agiblocks, pricing takes place at delivery line level, not contract level.
Partial delivery before a contract is 100% priced:
A partial delivery processed from a partially priced contract can be invoiced with a final price by doing a Full Pricing for that delivery line from the available partial pricing. In effect, different delivery lines of a contract can have different prices if their Full Pricing was done before the whole contract was 100% priced.
Example 2:
A contract is 100% priced with 7 lots at 500 USD/MT and 7 lots at 510 USD/MT to reach an average contract price of 505 USD/MT. An invoice must be made for a partial delivery of 8 lots in a different currency. This means that the contract must be split into two delivery lines of 8 and 6 lots, because a contractual delivery line can have only one settlement currency.
To split the contractual delivery line requires that pricings and hedge allocations must be redistributed. However, with 7 lots at 500 USD/MT and 7 lots at 510 USD/MT, it means that splitting it to get 8 lots will result in a different average price than was already agreed. This situation is caused by the fact that a contractual delivery line can only have one pricing process.
In Agiblocks, pricing takes place at delivery line level, not contract level.
Partial delivery after a contract is 100% priced:
For a 100% priced contract, all delivery lines get the final price of the full contract. In this case, all delivery lines get the same price, which is the average of all pricings on the contract.