COSTMIRROR - Costs Replication (specialist)
Month End Costs Mirroring
At the end of the month this process reviews all allocated trades for designated MIRROR departments.
The grid content will drive by Sales and will present both P & S trade details side-by-side with EVERY Cost listed. The process is to enable the user to create MISSING costs as Receivables on the PURCHASE trades according to the status of the SALE Costs. Some of the Sale costs could have been actualised and would need to create the estimates on the P side in order to make P&L for each cost = 0, i.e. the process is mirroring costs.
Example:
At month 1 none of the costs have been actualised for the P&S pair. On the P side the cost is always maintained as an Amount when replicated from the Sale.
There can be a mix of costs in different currencies which would be replicated onto the Purchase using the Sale Contract Currency. If a cost is in a different currency to the target currency, the translation is according to whether actualised or not. The month 1 copy would result in a net ZERO currency equivalent of costs for the P&S i.e. all costs were ticked to copy with the copy being shown as opposite to the Sale Payable/Receivable.
At month 2, some costs may have been actualised on the Sales side which may or may not match the original estimate. If this is the case, the process will ascertain if an additional line of payable or receivable on the purchase side is required.
Example Month 2.
This example illustrates a new cost DUTY being created and Chassis, Customs, Inland FRT, Fuel surcharge, insurance and Supervision all creating extra lines to balance the actualised Sale costs.; note Inland FRT, Fuel and Insurance created Payables on Purchase side because actualised Sale costs were less than original estimate.
Sale 10 MT
| Cost Type | CCY | Rate | Type | Actual | Incl. in P&L | Do Not Mirror |
| CHASSIS | USD | PMT | Pay | 3.25 | Y | N |
| CUSTOMS | USD | PMT | Pay | 2.25 | Y | N |
| FRT – Marine | USD | PMT | Pay | 55.00 | Y | N |
| Duty | USD | PMT | Pay | 15.00 | Y | N |
| HarborMaintFee | USD | PMT | Pay | 1.20 | Y | N |
| Inland FRT | USD | PMT | Pay | 12.34 | Y | N |
| Fuel Surcharge | USD | PMT | Pay | 4.28 | Y | N |
| Insurance | USD | PMT | Pay | 2.17 | Y | N |
| Supervision | USD | PMT | Pay | 1.80 | Y | N |
| Storage | USD | PMT | Pay | 3.00 | Y | Y |
Purchase side (AFTER copy of all SALE items)
| Cost Type | CCY | Rate | Type | Actualise | Incl. in P&L | Incl. in Commissions |
| CHASSIS | USD | PMT | Rec | 30 | Y | Y |
| CHASSIS | USD | PMT | Rec | 25 | Y | Y |
| CUSTOMS | USD | PMT | Rec | 20 | Y | Y |
| CUSTOMS | USD | PMT | Rec | 25 | Y | Y |
| FRT – Marine | USD | PMT | Rec | 550 | Y | Y |
| HarborMaintFee | USD | PMT | Rec | 12 | Y | Y |
| Inland FRT | USD | PMT | Rec | 127.5 | Y | Y |
| Inland FRT | USD | PMT | Pay | 4.1 | Y | Y |
| Fuel Surcharge | USD | PMT | Rec | 45 | Y | Y |
| Fuel Surcharge | USD | PMT | Pay | 2.2 | Y | Y |
| Insurance | USD | PMT | Rec | 22.5 | Y | Y |
| Insurance | USD | PMT | Pay | 0.8 | Y | Y |
| Supervision | USD | PMT | Rec | 17.5 | Y | Y |
| Supervision | USD | PMT | Rec | 0.5 | Y | Y |
| Duty | USD | PMT | Rec | 150 | Y | Y |
The COSTMIRROR performs on each P&S until the Sale has been marked as status Closed.