TCO bunker adjustment is considered in the revenue part of the P&L. The following variables are used in its calculation:

• VB1 = FIFO value of bunker grade (for example, IFO) in voyage at delivery

• TC1 = Value of bunker grade sold according to TCO terms

• VB2 = FIFO value of bunker grade in voyage at redelivery

• TC2 = Value of bunker grade purchased according to TCO terms

TCO bunker adjustment is calculated in the system for the following scenarios:

• Scenario 1: Bunker adjustment in a TCO voyage is calculated according to the difference between the FIFO inventory value of the voyage and the TCO delivery bunkers. The ending voyage bunkers of the TCO voyage will be priced at the TCO contract redelivery price. TCO bunker adjustment appears in the P&L when the vessel is delivered.
  
  TCO bunker adjustment = TC1 – VB1
  

• Scenario 2: Bunker adjustment in a TCO voyage is calculated according to the difference between the FIFO inventory value of the voyage and the TCO bunkers both on delivery and redelivery. This is activated with the Bunkers on Consumption checkbox. The ending voyage bunkers will be priced according to the FIFO voyage quantities and prices on delivery. TCO bunker adjustment appears in the P&L when the vessel is redelivered.
  
  In both cases, if there have been bunker purchases by the owner during the time charter voyage, these purchases will be treated separately according to FIFO. TCO bunker adjustment appears in the P&L when the vessel is delivered.
  
  TCO bunker adjustment = (TC1 – VB1) + (VB2 – TC2)