Chemical pricing and margin glossary

A material movement or disruption in an upstream input that triggers a defined commercial review.

Why it matters: The signal begins an investigation; it does not itself authorize a customer price change.

A curated set of relationships connecting market drivers and inputs to intermediates, products, contracts, and accounts.

Why it matters: Its version and confirmation state determine which exposure paths are supported rather than assumed.

Contract language that defines whether, when, and how a commercial price may or must change.

Why it matters: The signed wording, amendments, and applicable version govern; an extracted summary is not a replacement.

A contract mechanism that connects a price calculation to a named reference series and defined periods or rules.

Why it matters: Series, base period, lag, threshold, cap, floor, rounding, and currency must be resolved consistently.

The period in which a required notice must be issued for an action to take effect under the governing terms.

Why it matters: A commercially valid calculation can still be unavailable if its notice deadline has passed.

The supported state showing whether the governing evidence and timing permit a candidate action.

Why it matters: Missing or unconfirmed evidence must produce a refusal or review state, not an optimistic recommendation.

A reconciliation from a stated starting price through agreed discounts, rebates, freight, services, credits, and other conditions to a supported net result.

Why it matters: It makes each material component, source, sign, and allocation visible instead of hiding the gap in one percentage.

A net commercial margin view calculated on an explicitly stated revenue, cost, condition, scope, period, and currency basis.

Why it matters: The term is incomplete without its calculation basis and reconciliation coverage.

A supported adverse gap between an agreed comparison basis and the commercial result, after relevant drivers and data-quality limits are separated.

Why it matters: A variance is not automatically leakage; timing, mix, cost, data, and attribution must be resolved.

A supported commercial opportunity that has a permitted action path; it is not the same as approved, accepted, or realized value.

Why it matters: Keeping stages separate prevents an early estimate from being presented as money already recovered.

The governed record that keeps an opportunity and its action, approval, implementation, acceptance, realization, and evidence states distinct.

Why it matters: It supports reconciliation and prevents the same effect from being counted more than once.

A commercial effect reconciled to the agreed post-action source and attribution rule for the relevant period.

Why it matters: Approval or implementation alone does not prove realization.

The trace from a material statement or figure back to its source, version, scope, period, calculation, and approval context.

Why it matters: It lets a reviewer understand what is known, derived, missing, and approved.

An accountable person's explicit decision to accept, reject, or defer a proposed action after reviewing its evidence and uncertainty.

Why it matters: It is the gate before export or customer impact; AI assistance does not replace it.