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In Agiblocks it is possible to specify for product properties that a contract can instead of a single value, have multiple options. The idea is that later one specific value is declared on the reservations or deliveries for the contract. It is also possible to that each of these options can have an additional premium/discount value (a surcharge to apply to the price when this option is used).
Such a premium will be automatically applied as a surcharge as soon as the actual value for the option is declared. This can be used to differentiate the price of deliveries against the contract. The typical usage scenario is a sales contract where different types of packing are allowed.
Important: Premiums are expressed using the full currency and unit of the premium or price. This means that if the premium is denominated in USc/LB, the cargo premium should be entered in USD/LB – not in USc.
Example
| • | Create a sales contract for 500 MT of your commodity, to be fixed with futures and a premium of 50 USD/MT |
| • | On the commodity details select for the property of the product that requires price differentiation multiple value, and for each value a premium. E.g. Packing with values White bags for 0.20 USD/MT and Brown bags for 0.10 USD/MT |
| • | Price fix all the lots for this sales contract e.g. at 400 USD/MT and create a Full Pricing. Obviously you will see the price calculated as 400 + 50 = 450 USD/MT |
| • | Now open the reservations screen to create 3 reservations to this contract: |
| o | On this reservation edit on the right side the declaration for the Packing property as usual and declare the option White bags |
| • | A reservation for 100 MT |
| o | On this reservation edit on the right side the declaration for the Packing property as usual and declare the option Brown bags |
| o | On this reservation do not yet edit the declarations for Packing, leaving the options open. |
| • | There will be a remaining open quantity of 200 MT. On this open quantity declare the option Brown bags |
| • | Open the contract again and open the Risk tab, and inspect each of the 4 portions under the pricing section to see |
| o | 200 MT open quantity with a surcharge of 0.10 and a price of 450.10 |
| o | 50 MT reserved with a surcharge of 0.20 and a price of 450.20 |
| o | 100 MT reserved with a surcharge of 0.10 and a price of 450.10 |
| o | 150 MT reserved with no surcharges yet and a preliminary price of 450.00 |
| • | When delivering these goods these adjusted prices will be used on the invoice. |
| • | Aside: note that the price of the last portion is called preliminary: since the option was not yet declared we do not know the final price yet. As a result: |
| o | You cannot create an invoice for that portion until you declare the option |
| o | Delivered goods for that portion are not considered realized until priced so you will need to declare the option to finalize the pricing process for this portion (anyway you need to do this for the invoice). |
While the example is for a sales contract, the same mechanism also works for purchase contracts.
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