Practice Book - Tradon / Tryton

Interacid Trading S.A
Sulfuric Acid Drop Ship Trading Operations

Avenue des Baumettes 5, 1020 Renens, Switzerland Commodity: Sulfuric acid Currency: USD Scope: Physical trading only

Document Status

This Practice Book describes how Interacid Trading S.A will run sulfuric acid drop-ship transactions in Tradon. It is written as a target operating manual: the Trader, Back-office, Operations and Finance teams should be able to follow the lifecycle from master data and contract entry through budgeted costs, shipment execution, lot creation, matching, pricing and settlement.

The scope deliberately excludes futures hedging and FX hedging. Interacid's activity is treated as USD-denominated physical trading. Pricing covers mostly Priced contracts and selected Basis contracts, with Argus as the principal market reference. The public Interacid service positioning emphasizes global sulfuric acid trading, shipping/logistics capability, terminal services, safety and reliability; those themes are reflected in the operating controls in this book.

Company

Interacid Trading S.A

ERP

Tryton / Tradon

Commodity

Sulfuric acid

Flow

Drop Ship

Default Tolerance

Market

Argus

Currency

USD

Contents

1. Fundamentals and glossary
2. Master data setup
3. Purchase contract entry
4. Sale contract entry
5. Costs: budgeted, ordered and lot-specific
6. Drop-ship shipment execution
7. Physical lots and matching
8. Pricing and concentration adjustment
9. Scenario 1 - One purchase matched to one sale
10. Scenario 2 - One purchase matched to three sales
11. Appendix - models and tables

1. Fundamentals and Glossary

Operating principles

Interacid will use Tradon to control physical sulfuric acid trading from contract capture to final settlement. The core business pattern is Drop Ship: the purchase and sale are commercially matched, and the product moves directly from supplier/loading point to customer/destination without an Interacid warehouse storage step.

Each physical flow will be represented by a purchase contract, a sale contract, one or more shipment records, and physical lots that carry executed quantity, cost allocation, invoice status and matching status. The default contract tolerance is 5% unless a customer, supplier or specific contract requires another tolerance.

Important Note: Hedging, derivatives and FX cover tabs may exist in the configured application, but they are out of scope for Interacid's operational book. The teams will keep pricing and physical mechanics separate from hedging chapters because no hedging/FX process is expected for this scope.

Key term mapping

Business term	Tradon term / model	Use in this book
Purchase contract	purchase.purchase	Supplier-side commercial contract.
Sale contract	sale.sale	Customer-side commercial contract.
Open lot	lot.lot	Planned quantity used for matching.
Physical lot	lot.lot	Executed quantity used for matching, costing and invoicing.
Lot quantity state	lot.qt	Open, physical, matched or shipped quantity status used by matching screens.
Shipment	stock.shipment.in	Operational record for shipment milestones, BL data, costs and lots.
Budgeted/ordered/actual cost	fee.fee	Cost entered first as budgeted at contract level, then ordered at shipment level and inherited on all linked physical lots. Specific costs can be directly assigned to physical lots.
Price curve	price.price	Argus index or other market reference used by Basis/formula pricing.

2. Master Data Setup

Party defaults and price curves

Before entering the trade, Back-office will make sure the supplier, customer, service providers and Argus curves exist. Party defaults reduce repeated entry on contracts and enforce Interacid's default tolerance discipline.

Party screen - General tab

In Tradon, any company, contact, entity or person is a Party. This screen allows you to manage default values for various attributes. These defaults are used when creating contracts and other documents.

#	Attribute	Required	Operational description
1	Name	Yes	Name of the party.
2	Code	Yes	Unique code for the party (By default, it is auto-generated).
3	Party Name	No	Long name for the party.
4	Building Name	No	Self-explanatory.
5	Street	No	Self-explanatory.
6	Postal Code	No	Self-explanatory.
7	City	No	Self-explanatory.
8	Country	Yes	Self-explanatory.
9	Subdivision	No	Self-explanatory.
10	Categories	Yes	A party can belong to one or more categories. A supplier should be assigned to the appropriate supplier category (same principle applies to customers, brokers...).

Party General tab

Party screen - Contract tab

#	Attribute	Required	Operational description
1	Tol - in %	No	Default negative tolerance for contracts with the party. For Interacid sulfuric acid trading, enter 5 when the commercial relationship accepts +/-5% tolerance.
2	Tol + in %	No	Default positive tolerance. It should normally mirror the negative tolerance unless a supplier/customer agreement says otherwise.
3	Weight basis	No	Default commercial weight basis for the party, used when creating purchase or sale contracts.
4	Association	No	Default trade rule or association reference. Use only when the commercial terms require it.
5	Origin	No	Default product/geographic origin for documentation. For sulfuric acid, this should reflect the supplier or plant origin where relevant.

Screenshot placeholder - Party Contract tab

Expected capture: open a supplier or customer party in Tradon, display the Contract tab with numbered red callouts on tolerance, weight basis, association, origin and initials. A second capture should show the Execution tab if SLA costs are configured.

Price curve screen - Argus reference

#	Attribute	Required	Operational description
1	Price index	Yes	Short index code used in pricing components. Example: ARGUS_SA_USD_MT or the final Interacid-approved Argus index naming convention.
2	Description	Yes	Human-readable description of the Argus sulfuric acid reference.
3	Index type	No	Set to Spot or Future depending on the Argus source used. For regular physical sulfuric acid pricing, Spot will usually be sufficient unless monthly/future periods are configured.
4	Unit	No	Commercial unit for the quotation, normally metric ton.
5	Currency	No	Enter USD. All Interacid activity in this scope is USD-denominated.
6	Calendar	No	Quotation calendar controlling valid price dates.
7	Prices Values	No	Daily or period values imported or keyed for Argus. Basis contracts and formula-priced lines will read these values.

Screenshot placeholder - Price curve and price values

Expected capture: show the Argus sulfuric acid curve header and the Prices Values tab with at least three dated quotation rows. Number the index, description, unit, currency, calendar and price values table.

3. Purchase Contract Entry

The Trader or Back-office will create the purchase contract first. For drop ship, the purchase location and sale destination must be entered carefully because they drive matching, shipment, cost allocation and reporting.

Open the purchase contract screen and click New.
Enter the supplier, purchase date, currency USD, payment term and commercial reference.
Enter the Interacid trade fields listed below.
Add one purchase line for sulfuric acid, including quantity, tolerance, price type and concentration if concentration adjustment applies.
Enter the budgeted costs on the purchase line or contract cost tab before shipment execution.
Click Save, then follow the normal approval/confirmation process.

Purchase contract header field reference

#	Attribute	Required	Operational description
1	Weight basis	Yes	Commercial weight basis used for the sulfuric acid quantity. Back-office confirms the value from the supplier contract.
2	Certification	Yes	Certification attached to the physical contract if required for product documentation. Use the default if no special certificate is agreed.
3	Operator	No	Operations owner who will follow the shipment and physical lot execution.
4	Trader	No	Commercial owner of the purchase. This is used for internal follow-up and P&L ownership.
5	Our Reference	No	Interacid internal reference. Example: ITSA-SA-P-0001.
6	Tol - in % / Tol + in %	Yes	Enter 5 and 5 by default unless the supplier contract specifies another tolerance.
7	From location	Yes	Supplier loading location or origin terminal.
8	To location	Yes	Customer destination or discharge point. For drop ship, this should align with the sale contract destination.
9	Incoterm / Incoterm Location	Inherited	Commercial delivery rule and named place, copied from the supplier agreement.
10	Origin	No	Origin statement used for contract documentation and product traceability.

Screenshot placeholder - Purchase contract header

Expected capture: purchase contract form populated with an Interacid sulfuric acid supplier, USD currency, 5% tolerance, loading and destination locations, Incoterm and Interacid reference. Add numbered red callouts matching the table above.

Purchase line field reference

#	Attribute	Required	Operational description
1	Product	Base	Select the sulfuric acid product configured in Tradon.
2	Quantity / Unit	Base	Enter the contractual quantity in metric tons. Physical lots will later carry the executed quantity.
3	Price type	No	Select Priced for fixed USD price. Select Basis when the line references Argus plus/minus a differential.
4	Premium/Discount	No	Used for basis or differential pricing. Example: Argus + 2.50 USD/MT.
5	Concentration	No	Enter contractual concentration when price must be adjusted by sulfuric acid concentration.
6	Inherit tolerance	No	Leave checked for the default 5% contract tolerance. Untick only when the line has its own tolerance.
7	Fees	No	Enter budgeted costs at contract level before shipment. These will later be ordered at shipment level and allocated to lots.
8	Pricing / Components	No	For Basis contracts, add the Argus curve component and period rules. For Priced contracts, this tab may be minimal.

Screenshot placeholder - Purchase line tabs

Expected capture: purchase line showing sulfuric acid, quantity, price type, 5% inherited tolerance, concentration field, Fees tab and Pricing Components tab. Number the fields used in the table.

4. Sale Contract Entry

The sale contract represents the customer side of the drop-ship transaction. In the regular scenario it will match one purchase. In the split scenario, three sale contracts will be matched against the same purchase physical quantity.

Create the sale contract from the sale menu or from the commercial workflow agreed with Trading.
Enter the customer, USD currency, payment term and Incoterm.
Use the same destination logic as the purchase contract so the drop-ship route is consistent.
Add the sale line with sulfuric acid quantity, price type and concentration assumptions.
Save and confirm the sale contract before lot matching.

Sale contract header field reference

#	Attribute	Required	Operational description
1	Weight basis	Yes	Weight basis agreed with customer.
2	Agent / Operator / Trader	No	Commercial and execution owners. Fill when ownership must be visible in reporting.
3	Our Reference	No	Interacid sale reference. Example: ITSA-SA-S-0001.
4	Tol - in % / Tol + in %	Yes	Enter 5 and 5 unless the customer contract says otherwise.
5	From location	Yes	Drop-ship loading/origin location, aligned with the purchase when possible.
6	To location	Yes	Customer discharge/destination location. This replaces the base warehouse display in the sale form.
7	Incoterm / Incoterm Location	Inherited	Customer delivery term and named place.
8	Required documents	No	Document checklist for customer execution when a template is used.

Screenshot placeholder - Sale contract header

Expected capture: sale contract form populated with an Interacid customer, USD currency, 5% tolerance, from/to locations and customer Incoterm. Number the fields above.

Sale line field reference

#	Attribute	Required	Operational description
1	Quantity / Unit	Base	Customer contractual quantity. In the three-sales scenario, enter each sale quantity separately.
2	Price type	No	Usually Priced; use Basis where the customer price references Argus plus/minus a differential.
3	Premium/Discount	No	Basis adjustment or commercial differential.
4	Concentration	No	Customer-side concentration assumption where price adjustment applies.
5	Lots	After matching	Displays lots allocated/matched to the sale after the matching wizard is completed.
6	Fees	No	Use when sale-side costs or recoveries must be attached to the sale line.
7	Pricing rule	No	Free-text explanation shown on reports for Basis or formula-priced customer lines.

5. Costs: Budgeted, Ordered and Lot-Specific

Interacid will control costs in three steps. First, Trading or Back-office enters budgeted costs at contract level. Second, Operations creates or updates ordered costs at shipment level when the service is committed. Third, final or specific costs are allocated to the physical lots contained in the shipment.

Example cost allocation:
Freight budget = 80.00 USD/MT x 10,000 MT = 800,000.00 USD
Ordered freight = 82.50 USD/MT x 10,000 MT = 825,000.00 USD
Difference to monitor = 25,000.00 USD unfavorable

Fee screen field reference

#	Attribute	Required	Operational description
1	Type	Yes	Select Budgeted at contract level, Ordered at shipment level and Actual when final invoice information is known.
2	P/R	Yes	Pay/receive indicator. Freight, inspection and service costs are normally PAY.
3	Product	Yes	Service product, such as Maritime freight, inspection, terminal service, demurrage or other configured cost type.
4	Supplier	Yes	Service provider or vendor responsible for the cost.
5	Mode	Yes	Calculation mode: lump sum, per quantity, percentage of price/rate/cost, or per packing.
6	Price	No	Rate or amount according to mode. For freight per metric ton, enter the USD/MT rate.
7	Quantity / Unit	No	Quantity used to calculate the amount. It can be inherited from lots or shipment depending on setup.
8	Lots	No	Specific physical lots receiving the cost. Use this when a cost applies only to part of the shipment.
9	Amount	Computed	Calculated amount used for accrual, invoice checking and P&L.

Screenshot placeholder - Fee entry and lot allocation

Expected capture: show a budgeted contract fee, then an ordered shipment fee, then the fee lots selection with one or several physical lots selected. Number Type, Product, Supplier, Mode, Price, Quantity, Unit, Lots and Amount.

6. Drop-Ship Shipment Execution

For Interacid's drop-ship process, the shipment record is the operational bridge between the purchase, the sale and the physical lots. Operations will maintain carrier, vessel, BL, ETA, booking, receipt and control information.

From Lots Management, select open purchase/sale quantities to ship.
Create or open the shipment record.
Enter carrier, transport type, vessel, cargo mode, BL details and logistics dates.
Convert budgeted costs into ordered shipment costs where service commitments are known.
Create physical lots for the shipment once quantities are known.

Inbound/drop-ship shipment field reference

#	Attribute	Required	Operational description
1	Carrier	No	Carrier party or logistics provider responsible for movement.
2	From location	No	Loading point/origin terminal.
3	To location	No	Customer destination/discharge point.
4	Transport type	No	Select vessel, truck or other. Sulfuric acid seaborne movements will generally use vessel.
5	Vessel	No	Vessel master record when applicable.
6	Cargo Mode	Yes	Select bulk or container. Sulfuric acid is expected to be bulk unless a specific containerized flow is confirmed.
7	BL number / BL date	No	Bill of lading reference and date. These drive pricing and invoicing milestones where contract terms depend on BL.
8	ETA / ETD / Arrival	No	Operational milestone dates used by Operations to track shipment status and by Back-office for expected invoicing.
9	Fees	No	Ordered freight and logistics costs attached to the shipment.
10	Lots	After lot creation	Shipment lot quantities created from the open contract quantities.

Screenshot placeholder - Drop-ship shipment

Expected capture: shipment form with carrier, from/to locations, vessel, cargo mode, BL date/number, ETA/ETD and the Fees and Lots tabs. Number the fields above.

7. Physical Lots and Matching

Create physical lots

Physical lots are created when shipment quantities are known. They are the operational unit used to allocate ordered costs, match purchase to sale and support invoicing.

#	Attribute	Required	Operational description
1	Quantity available	Read-only	Open quantity available to split into physical lots.
2	Shipment In / Internal / Out	No	Shipment source selected by the workflow. For drop ship, use the relevant shipment carrying the direct movement.
3	Lot quantity	No	Quantity to create for each physical lot. In the three-sales scenario, create lot quantities aligned with the sale splits.
4	Net weight / Gross weight	No	Executed lot weights. Use net weight for commercial valuation unless the contract specifies otherwise.
5	Unit	Yes	Commercial unit, normally metric ton.
6	Premium	No	Lot-specific premium or discount if commercial terms differ by lot.

Screenshot placeholder - Add physical lots

Expected capture: Add physical lots wizard with the available quantity and one or more lot rows. For the split scenario, show three rows matching the three sale contracts.

Match purchase and sale lots

The matching wizard links purchase-side quantities to sale-side quantities. The total quantity entered on the purchase side should equal the total quantity entered on the sale side before the user applies matching.

#	Attribute	Required	Operational description
1	Purchase	No	Filter purchase candidates to the contract being matched.
2	Sale	No	Filter sale candidates to one sale contract, or leave filters broader when matching one purchase to several sales.
3	Qt type	No	Use Open for open contract quantities, Physic for physical lots or All for broad review.
4	Purchase lot table	Computed	Shows available purchase lots and quantities.
5	Qt to match	No	Quantity entered by Operations or Back-office for each purchase and sale candidate.
6	Sale lot table	Computed	Shows sale-side candidates. In the split scenario, enter quantities against three sale rows.
7	Total purchase / Total sale	Computed	Control totals. Apply matching only when totals agree within accepted tolerance.

Screenshot placeholder - Matching wizard

Expected capture: Matching wizard with purchase and sale filters, purchase lot rows, sale lot rows and total quantities. For the second scenario, show one purchase quantity split across three sale rows.

8. Pricing and Concentration Adjustment

Most Interacid sulfuric acid contracts will be Priced, but Basis pricing is also in scope. Basis lines use a pricing component linked to an Argus price curve and a premium/discount. Where agreed, the final price can be adjusted according to concentration.

Basis price example:
Final price = Argus reference + premium/discount
Final price = 95.00 USD/MT + 2.50 USD/MT = 97.50 USD/MT

Concentration adjustment example:
Adjusted price = Contract price x Actual concentration / Contract concentration
Adjusted price = 100.00 x 98.5 / 98.0 = 100.51 USD/MT
[@vendor: confirm final Interacid concentration adjustment formula and rounding rule]

Pricing component field reference

#	Attribute	Required	Operational description
1	Price Source	Yes	Select Curve when pricing from Argus. Select Matrix only if a configured route/quality matrix is used.
2	Fixation type	No	Reference fixation type for the curve, for example official quotation or settlement.
3	Ratio	No	Component weighting percentage. Use 100% for a single Argus reference unless the contract specifies a blend.
4	Curve	No	Select the approved Argus sulfuric acid price curve.
5	Calendar	No	Quotation calendar used to decide valid pricing dates.
6	Period rules	No	Rules that define pricing and application windows, such as dates before BL or a monthly quotation window.

Pricing record field reference

#	Attribute	Required	Operational description
1	Date	No	Quotation or fixing date.
2	Component	No	Price component being fixed.
3	Qt	No	Quantity fixed on the date.
4	Settl. price	No	Argus or final settlement price for the date.
5	Fixed qt price	Computed	Weighted average price for fixed quantities.
6	Unfixed qt	Computed	Remaining quantity still to be priced.

Screenshot placeholder - Pricing component and fixing records

Expected capture: contract line Pricing tab with an Argus component, period rule and pricing dates. Number the curve, ratio, calendar, date, quantity and settlement price fields.

9. Worked Scenario 1 - One Purchase Matched with One Sale

Scenario 1 Regular Drop Ship

Step	Actor	Expected result
Create purchase contract	Trader / Back-office	One USD purchase contract for sulfuric acid, 5% tolerance, supplier route and budgeted costs.
Create sale contract	Trader / Back-office	One USD sale contract with matching product, route, quantity and price type.
Create drop-ship shipment	Operations	Shipment contains carrier/vessel or logistics reference, BL data, ETA and ordered costs.
Create physical lot	Operations	One physical lot carries the executed shipment quantity.
Apply matching	Back-office	Purchase lot quantity equals sale lot quantity and both are linked.
Allocate costs to lot	Back-office / Finance	Ordered freight and services are allocated to the physical lot for P&L and invoice control.
Finalize pricing and invoicing	Finance	Priced line invoices directly; Basis line uses Argus pricing records and concentration adjustment if applicable.

Screenshot placeholder - Scenario 1 flow evidence

Expected captures: purchase contract, sale contract, shipment, add physical lot wizard, matching wizard with one purchase row and one sale row, and fee allocation on the physical lot.

10. Worked Scenario 2 - One Purchase Matched with Three Sales

Scenario 2 Purchase Split Across Three Sales

In this variant, one purchase shipment is commercially allocated to three customer sale contracts. Operations creates physical lots or lot quantities that match the commercial split, then Back-office matches the purchase quantity against the three sale quantities.

Step	Actor	Expected result
Create one purchase contract	Trader / Back-office	Purchase quantity covers the combined expected sale quantities plus tolerance.
Create three sale contracts	Trader / Back-office	Each sale contract has its own customer, price, delivery terms and quantity.
Create shipment	Operations	Shipment represents the full purchase movement.
Split physical lots	Operations	Physical lot rows are created to mirror the three sale quantities, or one lot is matched in three quantities depending on operational choice.
Apply matching	Back-office	The purchase total equals the combined total of the three sale rows.
Allocate costs	Back-office / Finance	Shipment costs are allocated to the specific physical lots so each sale carries its correct cost share.
Invoice each sale	Finance	Each customer invoice reflects its matched lot quantity, price type and any concentration adjustment.

Example split:
Purchase lot = 30,000 MT
Sale A = 10,000 MT, Sale B = 8,000 MT, Sale C = 12,000 MT
Matching control = 10,000 + 8,000 + 12,000 = 30,000 MT

Screenshot placeholder - Scenario 2 matching

Expected capture: matching wizard showing one purchase contract/lot and three sale rows. The Total purchase and Total sale fields must agree before applying matching.

11. Appendix - Models and Tables

Primary models used by this book

Screen / function	Tryton model	PostgreSQL table	Role
Purchase contract	`purchase.purchase`	`purchase_purchase`	Supplier-side contract header.
Purchase line	`purchase.line`	`purchase_line`	Supplier product, quantity, price and cost line.
Sale contract	`sale.sale`	`sale_sale`	Customer-side contract header.
Sale line	`sale.line`	`sale_line`	Customer product, quantity, price and cost line.
Shipment	`stock.shipment.in`	`stock_shipment_in`	Drop-ship execution, BL, dates, fees and lots.
Physical lot	`lot.lot`	`lot_lot`	Executed physical quantity used for matching and costing.
Lot quantity	`lot.qt`	`lot_qt`	Available, physical, matched and shipment quantity state.
Matching wizard	`lot.matching.start`	Transient	Matches purchase quantities to sale quantities.
Add physical lots wizard	`lot.add.lot`	Transient	Splits available shipment quantity into physical lots.
Fees	`fee.fee`	`fee_fee`	Budgeted, ordered and actual costs.
Fee allocation	`fee.lots`	`fee_lots`	Fee-to-lot allocation.
Pricing component	`pricing.component`	`pricing_component`	Argus curve or matrix component for Basis pricing.
Pricing fixing	`pricing.pricing`	`pricing_pricing`	Pricing/fixing values by date and quantity.
Price curve	`price.price`	`price_price`	Argus market index master data.
Price value	`price.price_value`	`price_price_value`	Curve quotation values.
Party	`party.party`	`party_party`	Customer, supplier and service provider master data.

Open item: Screenshots must be replaced with annotated captures from Interacid's configured Tradon environment. Never reuse another client's captures.