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.