Managing Commodity Sales Contracts in Levridge
Each commodity sales contract is comprised of varying levels of information related to the contract type, customer account, commodity type and more. Frequently, ag retailers are relying on large spreadsheets to track and manage this information and struggle to quickly access complete customer information and generate invoices. Using Levridge, built on top of Dynamics 365, ag retailers can easily track all important data in one system, and generate sales contracts more efficiently than ever before.
Creating Commodity Sales Contracts
When setting up sales contracts, you can define where the items will ship from, the contract type, customer account information, commodity type, units, contract quantity, load base options, number of loads, delivery period, ticker information, board price, basis, and net price.
Once a contract is set up, the information attaches to the customer account so any user within your system has access to all sales contracts for each specific customer.
Trader and Broker Details
Additional information can also be added once the contract is set up, including the quality grade of the commodity and trader and broker details. Custom broker information, including specific commission rates are attached per contract and overall payouts are automatically calculated within the system for any combination of sales contracts tied to each broker.
Discounts and Fees
Many users of the system find the most beneficial part of managing sales contracts within Levridge is the ability to automatically calculate any discounts or fees for each contract based on each account’s negotiated rates, special delivery terms, or other factors.
This information can automatically populate on each sales contract based on negotiated terms stored within the account’s record, or can be customized based on a specific contract.
Freight adjustments can be included in the pricing calculation. For example, if you have a contract you want to bring to market at a central location, you could put in a freight adjustment from the location the contract was issued from back to that central location. This setting allows you to automatically adjust the final contract for all commodities under that account without any manual calculation on your part.
You can also track the freight included in the basis, which allows you to track your full freight cost per sales contract. That information can automatically be coded to a separate account so you have a clear view of your complete freight cost information.
The item numbers, names, hedge factor, and units can be tracked in the sales contract for a more accurate long and short positioning report if your commodity isn’t board traded but still needs to be hedged.
Multiple delivery periods can be set for each contract. When contract quantities are specified for each delivery period, the system automatically calculates the quantity remaining to apply to subsequent deliveries.
Levridge is a complete solution for agriculture businesses who want to gain better visibility into their business, make better decisions, and ditch spreadsheets and manual processes for good. To learn more, reach out to the Levridge team today.