Skip to Content
TRADING
Back to overview/Settlement & P&L

Close the contract, know the number.

Provisional and final invoicing, cost matching against accruals, claims and quality adjustments, settlement reconciliation and a closed profit and loss per contract, desk and counterparty.

The problem

Trading margin is decided at pricing and confirmed at settlement, and the gap between the two is where most trading houses cannot explain their own performance.

Provisional pricing, quality adjustments, weight variance and late-arriving cost invoices all move the number after the deal is done — and each has to land on the contract, not in a general expense account.

Core workflow

Delivery to closed contract.

01
Provisional invoice
Raised on shipment where terms allow.
02
Outturn
Final quantity and quality confirmed.
03
Adjustment
Quality, weight and price adjustments applied.
04
Cost matching
Actual invoices matched to accruals.
05
Final invoice
Issued, settlement received or paid.
06
Close
Contract P&L closed and attributed.
What it covers

Invoicing

Provisional and final invoicesPrice adjustment mechanismsQuality and weight adjustmentCredit and debit notesMulti-currency invoicing

Cost closure

Accrual to actual matchingLate cost invoice handlingDemurrage settlementClaims and counterclaimsCost variance explanation

Result

Contract profit and lossMargin by desk and traderCounterparty profitabilityProduct and route marginRealised vs. expected margin
Operational outcomes
Per contract
Closed P&L, not per period
−0.4 pts
Gap between expected and realised
100%
Costs matched to an accrual
−6 days
Delivery to final invoice

Ranges observed on Al Jawad engagements. Targets agreed in assessment.

Close ten contracts properly with us.

We reconstruct the P&L on ten closed trades and show where expected margin was lost.