How the Long/Short Audit Report in Levridge Helps Commodity Processors Determine Why the Long/Short Risk Position Changed

By Levridge staff | Updated: Aug 23, 2023 | Accounting | read

Table of Contents

  1. What is Reported?
  2. Where is the Long/Short Audit Report Located in Levridge?

The Long/Short Audit Report is built into Levridge with Microsoft Dynamics 365 Finance and Operations to help commodity processors answer the questions: Why did the Long/Short risk position change? What did the change consist of?

The Long/Short Audit Report details position changes from a user-provided start and end date. If desired, this report can be run daily to track changes from the previous day.

 

What is Reported?

The following are on the Long/Short Audit Report:

  • Purchase contract, sales contract, and futures trade activity details.
  • Net activities that change the contract quantity between the report start date and the report end date.
  • Contract and futures trades that result in a longer position are reported in the ”Increase” column. Those that result in a shorted position are reported in the “Decrease” column.
  • If a contract quantity changes multiple times during the reporting timeframe, only the net change is reported.
  • Contract activity for price-later contracts will only display when the basis or board price is set since price-later contracts with no board or basis do not affect market risk.

Inbound tickets, outbound tickets, transfer tickets, and ticket applications have no effect on the overall net risk position so those activities are not reported.

Below is a more in-depth summary of transactions that will result in a contract being reported:

Chart labeled "Purchase Contracts". On the left are scenarios and on the right are increases or decreases in position.

Chart labeled "Sales Contracts". On the left are scenarios and on the right are increases or decreases in position.

Chart labeled "Futures Trade". On the left are scenarios and on the right are increases or decreases in position.

 

Where is the Long/Short Audit Report Located in Levridge?

To find this report, go to Commodity accounting > Inquiries and reports > Risk > Long and short audit report.

Document labeled Risk Position Change Audit Detail. The commodity is corn. The report lists increases and decreases in the Purchase contract and the Sales contact.