Commodity traders can have relationships with many counterparties and maintain several contracts with each one. The terms and pricing data in an agricultural commodity contract can be highly complex and include pricing adjustments based on quality factors. In addition, the contract execution can involve both planned and unplanned deliveries, which must be recorded and assigned to one or more contracts. Finally, the contract settlement process must handle prepayments, reassignments, quality-based pricing, tolerances, and optionalities. SAP Agricultural Contract Management enables commodity traders to capture and manage these complex commodity contracts. It is an end-to-end solution that supports the full contract life-cycle, including the capture of the contract terms, the logistical processing, and the final settlement and closure.
SAP Agricultural Contract Management supports the following commodity contract scenarios:
- Third-Party Purchase
- Third-Party Sale
- Spot Purchase
- Commingled Stock
- Washout (including the Circle variation)