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Cloud4Commodities Tech Blogs 16 October 2020 Matthijs van Schaik

How to manage expected operational cost versus the actual costs received


In an earlier blogpost (How to manage additional cost coming with a trade deal) we highlight the automatic calculation of expected operational cost during trade capture. Within this post we highlight the process of receiving an actual invoice and creating a relation between the actual invoice and the expected operational cost.

This feature, called Financial Events, provides a couple of important benefits for your organization

  • Pre-post analysis helps to better predict expected cost within future trades or shipments
  • An overview of which cost invoices still to receive, and accruals to release
  • It automates the accrual release process
  • Providing information about the actual margin made


The process in short

At the moment a trade deal is logistically planned for execution, a purchase order, shipment(s) or sales order is created. This triggers the creation of a financial event per expected cost component. For example, the freight cost (PO-Freight) for this shipment is expected to be 8500 USD.

At the moment of product receipt, start of shipment or sales invoice posting, the expected cost are financially posted as accruals.

In this example the actual invoice received is less than the posted accrual, 8400 USD. After invoice registration a relation between the actual invoice and the financial event (expected cost) is created.

After approving this relation, the actual invoice is posted. This posting results in a remaining accrual balance of 100 USD. Based on the expected cost calculation this amount is still expected.

If these actual costs are not received, the status of the financial event can be updated to Fulfilled. This triggers the system to release the 100 USD accrual to the P&L.

The release of accrual can be managed from different places within the system. This to speed up the process of accrual releases and cleaning up the balance sheet:

  • The actual invoice is related to the financial event
  • Manual from the financial event form
  • If the related logistic operation is set to closed, all related financial events are set to fulfilled

The final status of a financial event has a balance of 0.00 and the fulfillment status is set to fulfilled.

For more information about financial events and the reporting possibilities, contact us via: