Setting the Contract Price Date as Ending Day of Accrual Charge

By Levridge staff | Updated: Aug 11, 2025 | Accounting , Grain , Product Updates , Release Notes , Scale | read

Table of Contents

  1. Introduction to Accrual Fees
  2. The New Contract Price Date Feature
  3. Setting Up the Contract:
  4. Entering a Scale Ticket:
  5. Applying the Contract:
  6. Pricing the Contract:
  7. Calculating the Fee:
  8. Settlement:
  9. Benefits of the New Feature

The Levridge 2025 Release 1.0 introduces a new option to allows users to set the contract price date as the ending day of an accrual charge. This significantly enhances the flexibility and accuracy of fee calculations.

Introduction to Accrual Fees

Accrual fees are charges that accumulate over time based on specific criteria. In previous versions, users had the option to set a fixed date or a settlement date for fee calculation. The fixed date would be the last day the fee was calculated, while the settlement date allowed the fee to accrue daily until the grain was settled.

The New Contract Price Date Feature

This feature allows users to set the contract price date as the ending day of an accrual charge. The system calculates the fee from the ticket date to the contract price date, giving users more precise control over fee calculations.

Setting Up the Contract:

A purchase contract is created in the system with an unpriced fee schedule tied to it. The unpriced fee is an accrual fee set at one cent per day.

Screenshot of how to set up a purchase contract in Commodity Accounting

Entering a Scale Ticket:

After the purchase contract is created, add a scale ticket into the system for an inbound ticket to Anderson Farms. The ticket is dated the 10th and is for 1000 bushels. At this point, the ticket is in an unapplied status, and no fees are calculated yet.

Enter the data for the scale ticket in Inbound Commodity Accounting.

Applying the Contract:

Then the purchase contract is applied to the ticket. The ticket application window allows the user to check off the ticket number and apply it to the contract.

Apply the purchase contract to the ticket.

Pricing the Contract:

The contract is priced as of the 14th. The user sets the price at $5.20 with a basis of -5 cents, resulting in a net price of $5.15. The remaining bushels are priced as of the 14th.

Set the price for the contract including the price and basis.

Calculating the Fee:

The system calculates the unpriced fee for the four days from the ticket date to the contract price date. For 1000 bushels at one cent per day, the fee amounts to $50.

The fee is calculated from the ticket date to the contract price date.

Settlement:

When the ticket is settled, the price later fee is deducted from the settlement.

Benefits of the New Feature

The addition of the contract price date feature offers several benefits:

  • Precision: Users can now set the exact date for fee calculation, ensuring accurate and fair charges.
  • Flexibility: The feature accommodates various pricing scenarios, making it easier to manage contracts and fees.
  • Efficiency: Automating the fee calculation process reduces manual effort and minimizes errors.

The 2025 R1 release brings a valuable enhancement to the accrual fee functionality with the introduction of the contract price date feature. This update provides users with greater control and precision in fee calculations, ultimately improving the overall efficiency of managing contracts.

Discover the full benefits of Levridge Commodity Accounting.