Support : User Guide
Trading : Physical Deal Entry

To enter a physical deal go to Trading and then to the Physical tab.

There are 2 types of physical deal : Spot and Term.

Entering a Physical Spot Deal
Entering a Physical Term Deal

 

Entering a Physical Spot Deal

Trading Physical Spot Deal Contract

To enter a physical spot deal, in Contract panel:

  1. Click on New Button to create a new line.
  2. In Contract Date select the date of the contract.
  3. In Contract Ref enter the applicable contract ref.
  4. *Contract Ref can also be set to be automatically generated. The settings are in Reference Data -> Accounting -> Reference Mask.*

  5. In Contract Type select the applicable Contract Type. By selecting the applicable contract type the commodity dropdownlist under Contract Item will display the relevant commodities for the type as defined in Commodities Setup.
  6. In Contract Book select the book to use for this contract.
  7. *Books are setup in Reference Data -> Books.*

  8. In Other Party Type select the applicable Other Party Type for this contract.
  9. For Internal and Inter-entity deal refer to Internal/Inter-entity Deal Entry.

  10. In Counterparty select the applicable counterparty.
  11. *Counterparty are setup in Credit -> Companies.*

  12. In Other Book select the other book to use for this contract if this is an internal or inter-entity deal. For Third Party deal, this will not be required.
  13. *Contract Book are setup in Reference Data -> Books.*

  14. In Type select the applicable type. select "Spot" for spot deal.
  15. In Commodities this will show the list of commodities used in this contract once the contract items are added.
  16. In Description enter a relevant description for this contract.
  17. In Created By this is a read only field which shows the user name that created the contract.
  18. In Approval Status this is a read only field which shows the approval status of the contract.
  19. *More information about Approvals can be found in Trading -> Approvals.*

  20. In Contract Num this is a read only field which shows the unique contract number of the contract.
  21. In Approval User this is a read only field which shows the contract's last approver name.
  22. In Next Approval User this is a read only field which shows the contract's next approver name.
  23. Click Save Button to confirm creation.
  24. To edit contract details after creation click Edit Button to edit.

Trading Physical Spot Deal Contract Items

To further enter a physical spot deal, in Contract Items panel:

  1. Click on New Button to create a new line.
  2. In Date select the date of the contract item. The date is defaulted with contract date from the Contract panel. If the contract item date is different from the contract date, you can select another date.
  3. In Trader select the applicable trader name for the deal.
  4. The list of traders is from the user list setup. Contact CoreTRM Support if you wish to add new traders.

  5. In Buy/Sell select buy or sell for the contract item.
  6. In Quantity enter the quantity of the contract item.
  7. In Units, enter the quantity units for the contract item.
  8. *Units are setup in Reference Data -> Units.*

  9. In Commodity select the applicable commodity for this contract item. If commodity templates are setup then default pricing items, fees and specifications will appear after saving the contract items.
  10. *Commodities are setup in Reference Data -> Commodities*

  11. In Frequency select the applicable Frequency. Spot deals should be set to "Once". The rest of the options are used by term deals.
  12. In Inco. select the applicable incoterms for this contract item.
  13. *Incoterms are setup in Reference Data -> Incoterms.*

  14. In Location select the incoterm location applicable for this contract. For Example: FOB Singapore.
  15. *Locations are setup in Reference Data -> Locations.*

  16. In Start Date Range select the start date range of the contract item. For Example: Delivery of April 2023 will select 1st April 2023 as start date.
  17. In End Date Range select the end date range of the contract item. For Example: Delivery of April 2023 will select 30th April 2023 as end date.
  18. In Price Unit select the pricing unit to be used for this contract item.
  19. In Ccy select the pricing currency to be used for this contract item.
  20. *Currencies are setup in Reference Data -> Currencies.*

  21. In Settlement Basis select the settlement basis for this contract item. The settlement basis will be used to calculate the due date.
  22. *Settlement Basis are setup in Reference Data -> Accounting.*

  23. In Setl.Ccy select the applicable settlement currency to be used for this contract item.
  24. In Credit select the credit term to be used for this contract item.
  25. *Credit terms are setup in Reference Data -> Credit.*

  26. In Comments enter applicable comments for this contract item.
  27. In Optional? tick this box if your contract involved options for delivery or pricing term. When there are multiple options involved in the contract, multiple contract item lines can be created to represent each option. On valuation only the contract item lines without optional check box ticked will be valued and fed into ops, accounting, risk, etc. When the options to use is decided, you can uncheck the appropriate contract items lines.
  28. *From Step 20 to 37, the information is optional except step 28*.

  29. In Min Quantiy enter applicable max quantity allow in this contract item.
  30. In Max Quantity enter applicable min quantity allow in this contract item.
  31. *If Min and Max Quantity is used, step 19 to 21 is not required and vice versa.

  32. In Tolerance select applicable tolerance type. If Torelance is selected, fill up "Amount" and "Unit"
  33. In Amount enter applicable amount for the tolerance. For example, 5 % Plus/Minus.
  34. In Unit select the applicable unit for the tolerance.For example, 5 % Plus/Minus.
  35. In Tolerance By select the applicable Tolerance By for this contract item.
  36. In Governing Law select the applicable Governing Law for this contract item.
  37. *Contact CoreTRM support if you required more Governing Law.

  38. In General Terms and Conditions, select the applicable GT and C for this contract item.
  39. *GT and Cs are setup in Reference Data -> GT and C.*

  40. In Invoice Quantity, select the applicable event in which the final settlement quantity should be based on. This will also default the event in Operations -> Transactions -> Dates and Quantities.
  41. *The system is able to calculate LC issuance date using information provided in step 29 to 33. The LC due date will be populated in Operations -> Transactions -> Pricing Summary -> LC Due Date*.For Example, LC Due Date is 5 Business Day Prior to NOR. Alternatively, a specific due date can be specify in step 34.

  42. In LC Issuance enter the number of days to use for the system to calculate LC Due Date. Example: 5.
  43. In LC Issuance Type select the applicable LC issuance Type to use for the system to calculate LC Due Date. Example: Business Days.
  44. In LC Issuance Calendar select the applicable calendar to use for the system to calculate LC Due Date. Example: US Banking.
  45. In LC Issuance Prior/After select the applicable Prior/After to use for the system to calculate LC Due Date. Example: Prior
  46. In LC Issuance Event select the applicable Event to use for the system to calculate LC Due Date. Example: Notice of Readiness.
  47. In LC Issuance Specific Date select a specific date for the LC due date. If this option is used, step 26 to 30 is not required.
  48. In Demurrage Laycan Hours enter the agreed demurrage hours. For example: 48
  49. In Demurrage Laytime Allowance Hours enter the agreed allowance hours for demurrage. For example: 6.
  50. In Demurrage Laytime Daily Rate enter daily rate of demurrage.
  51. *The system is able to calculate the demurrage to be paid with the information from step 35 to 37. This can be found in Operations -> Demurrage*

  52. In Price Rounding select the applicable price rounding to use for the calculated commodity price.
  53. Click Save Button to confirm creation.
  54. To edit contract item details after creation click Edit Button to edit.

Trading Physical Spot Deal Pricing Items

To further enter a physical spot deal, in Pricing Items panel:

  1. Click on New Button to create a new line.
  2. In Price Type select the price type applicable to the pricing. Typically "Standard" will be used for most pricing type.
  3. "Quantity" and Balance" can be used for pricing based on specific quantity and the balance quantity will be based on another pricing.

  4. In Pricing Amount enter the pricing amount relative to the unit. Typically it will be in 100%.
  5. In Unit select the unit applicable to the pricing. Typically it will be in %.
  6. In Fixed Price enter a fixed price is the deal is based on Fixed Price .
  7. In Price Series select the price series to be based on for the pricing if this is not fixed price.
  8. *Price Series are setup in Price Data -> Price Series*

  9. In Forward Period select applicable forward period if Price Series selected is a Forward Price Series.
  10. In Formula select applicable Formula if Formula is to be used for pricing.
  11. *Formula are setup in Price Data -> Formulae*

  12. In Price to Use select the applicable Price to use.
  13. Around Event: this is used when the pricing is based around an event. For Example: 5 Days around BL.

    Last Day of Event Month: this is used when only the last day of the month price is used. For Example: OSP Prices.

    Specific Dates: this is used to specify a specific pricing period. For Example : 1st Jan to 15th Jan 2023.

    Whole Month Average: this is used when the pricing is based on pricing quotes for a whole Month average. For Example: Whole Month of Average BL Month.

  14. In Pricing Event select the applicable event to use when "Around Event", "Last Event Month" or "Whole Month Average" Price to Use is used.
  15. In No. of Days Before enter the number of prices to use before an event. For Example: 2.
  16. In Prices on Event enter 1 to count the event date as price date or 0 to not count the event as price date.
  17. In No. of After Before enter the number of prices to use after an event. For Example: 2.
  18. In Specific Start Date select the applicable start date if "Specific Dates" is used for "Price to to Use".
  19. In Specific End Date select the applicable end date if "Specific Dates" is used for "Price to to Use".
  20. In Ccy select an applicable currency to use for the pricing item.
  21. In Unit select an applicable unit to use for the pricing item.
  22. In Premium/Discount, enter an applicable Premium/Discount amount.
  23. In Ccy select an applicable currency to use for the premium/discount.
  24. In Unit select an applicable unit to use for the premium/discount.
  25. In Price Rounding select an applicable price rounding to use for the pricing item.
  26. In Event Weekend Rule, if applicable, select an Event Weekend Rule to use. This will determine the action should the event fall on a weekend.
  27. Exclude: this will exclude the price from the pricing date to use.

    Next: if the pricing date falls on weekend, next Monday(if not holiday) will be used.

    Previous: if the pricing date falls on weekend, previous Friday(if not holiday) will be used.

    Split: if the pricing date falls on Saturday, Friday will be used or if the pricing date falls on Sunday, Next Monday will be used.

  28. In Price Fixed Floor Price enter applicable amount to set a Fixed Floor price. In the event the calculated price is lower than the floor price, the fixed floor price will be used.
  29. In Price Fixed Ceiling Price enter applicable amount to set a Fixed Ceiling price. In the event the calculated price is higher than the ceiling price, the fixed ceiling price will be used.
  30. Click Save Button to confirm creation.
  31. To edit pricing item details after creation click Edit Button to edit.

*Once a contract is entered, approvals may be required. More information on Contract Approvals can be found here.*

Entering a Physical Term Deal

Trading Physical Term Deal Contract

To enter a physical term deal, in Contract panel:

  1. Click on New Button to create a new line.
  2. In Contract Date, select the date of the contract.
  3. In Contract Ref, enter the applicable contract ref.
  4. *Contract Ref can also be set to be automatically generated. The settings are in Reference Data -> Accounting -> Reference Mask.*

  5. In Contract Type select the applicable Contract Type. By selecting the applicable contract type the commodity dropdownlist under Contract Item will display the relevant commodities for the type as defined in Commodities Setup.
  6. In Contract Book select the book to use for this contract.
  7. *Books are setup in Reference Data -> Books.*

  8. In Other Party Type select the applicable Other Party Type for this contract.
    For Internal and Inter-entity deal, refer to Internal/Inter-entity Deal Entry.
  9. In Counterparty select the applicable counterparty.
  10. *Counterparties are setup in Credit -> Companies.*

  11. In Other Book select the other book to use for this contract if this is internal or inter-entity deal. For Third Party deal, this will not be required.
  12. *Contract Book are setup in Reference Data -> Books.*

  13. In Type select the applicable type. select "Term" for term deal.
  14. In Commodities this will show the list of commodities used in this contract once the contract items are added.
  15. In Description enter an applicable description for this contract.
  16. In Created By this is a read only field which shows the user name who created the contract.
  17. In Approval Status this is a read only field which shows the approval status of the contract.
  18. *More information about Approvals can be found in Approvals.*

  19. In Contract Num this is a read only field which shows the unique contract number.
  20. In Approval User this is a read only field which shows the contract's last approver name.
  21. In Next Approval User this is a read only field which shows the contract's next approver name.
  22. Click Save Button to confirm creation.
  23. To edit contract details after creation click Edit Button to edit.

See the sections under spot deal above for guidance on entering Contract Items and Pricing Items.

After the term deal details are created you will then have to add the individual lifting transactions periodically to flow to ops, accounting, risk, etc. In order to create the lifting transactions, the contract has to be approved first.

*Contract approval can be found here.*

Trading Physical Term Deal Transactions

Once the term deal is approved you can add a lifting transaction in the Transactions panel:

  1. Click on New Button to create a new line.
  2. In Date select the date of lifting.
  3. In Term Lifting Id enter an term lifting id for this lifting. Or leave blank for auto assignment, eg 1, 2, etc.
  4. In Commodity select the applicable commodity for the lifting.
  5. *Commodities are setup in Reference Data -> Commodities*

  6. In Incoterms select the applicable incoterms for the lifting.
  7. *Incoterms are setup in Reference Data -> Incoterms.*

  8. In Load/Discharge Port select the applicable load/discharge port for the lifting.
  9. *Load/Discharge Ports are setup in Reference Data -> Locations.*

  10. In Start Date Range select the applicable start date of the lifting.
  11. In End Date Range select the applicable end date of the lifting.
  12. In Quantity enter the quantity amount for the lifting.
  13. In Unit select the quantity unit for the lifting quantity.
  14. *Units are setup in Reference Data -> Units.*

  15. In Price Unit select the applicable pricing unit for the lifting quantity.
  16. In Ccy select the applicable pricing currency for the lifting.
  17. *Currencies are setup in Reference Data -> Currencies.*

  18. In Settlemnt Ccy select the applicable settlement currency for the lifting.
  19. In Due Date Basis select the due date basis for this lifting. The due date basis will be used to calculate the due date.
  20. In Pricing Start this will show the pricing start date of the lifting. This will be updated after pricing items are created for the lifting.
  21. In Pricing End this will show the pricing end date of the lifting. This will be updated after pricing items are created for the lifting.
  22. In Transaction Status the status is blank by default which means this transaction will be used for ops, risk, and settlement.
  23. *Cancel: Transaction can be set to Cancel when liftings are canceled. Once a transaction is set to Cancel it will not appear in ops, risk, and settlement.*

  24. In Price Rounding select the applicable price rounding to use for the calculated price of the lifting.
  25. In Settlement Value Rounding select the applicable settlement value rounding to use for the calculated settlement price of the lifting.
  26. Click Save Button to confirm creation.
  27. To edit transactions details after creation click Edit Button to edit.

Back to top
Need More Assistance?

Please get in touch.

Chat with

CoreTRM