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Some customers need to use Purchase and Sales contracts in a "Repo" scenario that involves a bank. Agiblocks can accommodate this as described below.
Prerequisite: Create one or more Repo Positions in Agiblocks Master data.
| 1. | Create a Purchase contract from a supplier and a Sales contract with a bank. |
| a. | Enter the Purchase contract at a fixed price (in case the purchase price is known) |
| b. | Enter the Sales contract priced at 95% over the price in the commodity's futures market. |
| 2. | Create a Reservation between the Purchase and Sales contracts. |
| 3. | Execute the Delivery to complete the sales and reflect the ownership transfer. |
| 4. | Create a commercial invoice for the bank. |
| 5. | Create a buy-back Purchase contract from the bank. |
| a. | Allocate the buy-back Purchase contract to a repo Position for your inventory management purposes. |
| b. | Set the contract price as zero (market price shall be zero too) to avoid P&L created from this Position |
| 6. | Once a customer is found, the goods shall be bought back from the Bank: |
| a. | Add the incoming invoice from the bank with the price and including any additional costs in in Agiblocks |
| b. | Allocate the invoice the buy-back Purchase contract. |
| c. | Price the contract with the actual price + costs (either flat or price against futures) |
| d. | Change the Position from the repo position to the actual sales position. |
| 7. | Create a Sales contract. |
| a. | Make a Reservation between the buy-back Purchase contract and the Sales contract and execute the delivery |
| b. | Create a commercial invoice. |
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