How “Fill at Market Price” Works for Sales and Purchase Contracts in Levridge

Here’s how the “fill at market” process works for sales and purchase contracts in different scenarios:

Sales Contracts

If the net price is more than the sales contract, it will result in a purchase order. For example, if the sales contract is board = $5 and basis = -$0.50, then the net price is $4.50. If they fill with the board = $5.25 and basis = -$0.50 for a net price of $4.75, an AP vendor invoice will be generated. Similarly, using the same contract board and basis pricing, if the basis goes down to -$0.25, then the net price is $4.75 so an AP vendor invoice will be generated.

If the net price is less than the sales contract, it will result in the sales order using the fill item on the released item. For example, if the sales contract is board = $5 and basis = -$0.50, the net price will be $4.50. If they fill with the board = $4.75 and basis = -$0.50 for a net price of $4.25, a Sales order will be generated using the fill item from the commodity. Likewise, using the same sales contract pricing of $5 and -$0.50, if the board price stays at $5 but the basis goes up to -$0.75, the net price will be $4.25 so a sales order will be generated.

Purchase Contracts

If the net price is more than the purchase contract, it will result in a sales order using the fill item on the released item. For example, if the purchase contract is board = $5 and basis = -$0.50, then the net price is $4.50. If they fill with the board = $4.75 and basis = -$0.50 for a net price of $4.25, a Sales order will be generated using the fill item from the commodity. Similarly, using the same purchase contract pricing of $5 and -$0.50, if the board price stays the same at $5 but the basis goes up to -$0.75, then the net price will be $4.25 so a sales order will be generated.

If the net price is less than the purchase contract, it will result in a purchase order. For example, if the purchase contract is board = $5 and basis = -$0.50, net price will be $4.50. If they fill with the board = $5.25 and basis = -$0.50 for a net price of $4.75, an AP vendor invoice will be generated. Similarly, using the same contract board and basis pricing, if the basis goes up to -$0.75, the net price will be $4.25 so an AP vendor invoice will be generated.

Fill at Market Price in Levridge: