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Certain commodities are priced based on the elements within the commodity, like the purity of gold or the fat content of milk products. To accommodate this, Agiblocks introduced Commodity Elements to record element percentages for use in these variable pricing models:
Premium by Content
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A premium value will be added to the stipulated price for every percentage point the commodity element is higher than stipulated in the contract.
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Quoted with Content
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The same as premium by content, except that a quoted price is used instead of a stipulated price. A premium can also be applied to the quoted price.
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Priced by Content
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The contract is priced based purely on the commodity element percentage, without any fixed price.
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These models require specific configuration in Master data before they can be used:
| • | Commodity elements need to be set up for the commodity. |
| • | Pricing models need to be selected for the commodity. |
| • | Use a position without valuation instrument. |
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