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As the TC owner for TC Out contracts, you know the delivery and redelivery quantity and price. As a result, on the TC Out Bunkers tab, you can select Bunkers on Consumption to calculate delivery and redelivery adjustments.
Checkbox disabled (by default)
In the time charter out contract, the initial bunkers and prices outlined in the Bunker tab are contractual agreements between the Operator and TCO Charterer. The price outlined in the contract is usually different than the price of the bunker inventory.
When the Bunkers on Consumption is not checked, the bunker inventory (based on average) is now overwritten by the delivery bunkers. The final bunker inventory at the end of the voyage will be based on the redelivery bunkers.
This can cause massive swings in the P&L if there are considerable price differences between the bunker inventory before the time charter out, and the bunker inventory after the time charter out voyage bunkers were redelivered at the contractual price.
Checkbox enabled
When the user checks Bunker on Consumption, the bunkers consumed during the voyage calculate based on the bunker inventory prices. The only adjustment on the P&L will be based on the difference between the delivery bunkers and the redelivery bunkers quantities and pricing.