diff --git a/app/models/derived_variables/sales_log_variables.rb b/app/models/derived_variables/sales_log_variables.rb
index 034816090..a527ed3f0 100644
--- a/app/models/derived_variables/sales_log_variables.rb
+++ b/app/models/derived_variables/sales_log_variables.rb
@@ -15,5 +15,6 @@ module DerivedVariables::SalesLogVariables
     if mscharge_known.present? && mscharge_known.zero?
       self.mscharge = 0
     end
+    self.pcode1, self.pcode2 = postcode_full.split(" ") if postcode_full.present?
   end
 end
diff --git a/spec/models/sales_log_spec.rb b/spec/models/sales_log_spec.rb
index c470bc5d3..bad72db3b 100644
--- a/spec/models/sales_log_spec.rb
+++ b/spec/models/sales_log_spec.rb
@@ -127,6 +127,13 @@ RSpec.describe SalesLog, type: :model do
       record_from_db = ActiveRecord::Base.connection.execute("select deposit from sales_logs where id=#{sales_log.id}").to_a[0]
       expect(record_from_db["deposit"]).to eq(nil)
     end
+
+    it "correctly derives and saves pcode1 and pcode1 and pcode2" do
+      sales_log.update!(postcode_full: "W6 0SP")
+      record_from_db = ActiveRecord::Base.connection.execute("select pcode1, pcode2 from sales_logs where id=#{sales_log.id}").to_a[0]
+      expect(record_from_db["pcode1"]).to eq("W6")
+      expect(record_from_db["pcode2"]).to eq("0SP")
+    end
   end
 
   context "when saving addresses" do