commodity trading and risk management

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					Commodity Trading                                                                                                                     1




commodity trading and risk management



control and management
The trading of commodities is a complex business. There are many factors that
                                                                                         Key benefitS
can have a direct impact on the profitability of a trade – some within the control
of an organization but many outside an organization’s control. For example,              •	 Track contracts through the full life
a hurricane damaging a coffee crop. It is therefore essential that a company                cycle.
manages and controls those factors that it can directly influence. One of the            •	 Real time information with daily market
key areas is the management of costs which in turn are reflected in the overall             prices and daily mark to market
profitability of a trade.                                                                   valuations.
A successful trading organization needs immediate access to accurate and up to           •	 Quality based price adjustments
date information related to their contracts, logistics and risk positions. In the fast      (bonification).
ever changing world of commodities this means a company can only be more
                                                                                         •	 Workflows for integrated logistics and
pro-active.
                                                                                            shipping.
The most effective way of achieving this is to have all information stored
                                                                                         •	 Integrated invoicing and reporting.
centrally in a fully integrated solution that can be used by all departments
in an organization. Information can flow seamlessly from one department                  •	 Risk Management and Risk Dashboard.
to another – from trading to logistics to finance – improving efficiency and
communications.



SupportS the full life cycle of contractS
Scalable’s Commodity Trading fully integrates commodity trading with Microsoft
Dynamics AX logisitics and financial processes. The Commodity Trading
solution leverages the full business functionality of Microsoft Dynamics AX and
complements it to meet the requirements of commodity trading.

Commodity Trading provides an integrated solution for contract administration,
shipping/logistics, inventory management, financial integration and reporting.
All trading and contract information is available in real-time and the solution
supports the full life cycle of commodity contracts. An innovative Risk
Dashboard allows real time information about futures, options contracts,
hedging and foreign exchange positions.



flexibility and better communication
Although most companies have common commodity trading requirements,
some commodities require specialised functionality. Commodity Trading offers
the flexibility to address special requirements in areas like, documentation,
advanced logistics or compliance. Scalable’s Commodity Trading provides both
the flexibility and control to trade successfully and real-time access to contract
and logistics information supports better communication between departments
and with suppliers.
Commodity Trading                                                                                                                       2



Key featureS of commodity trading

•	 Track contract through the full life cycle from initial booking   •	 Logistics schedule with an overview of movement of goods,
   to invoicing                                                         route and cost information for transports

•	 Time saving contact entry and administration                      •	 Set up and management of customer specific logistics
                                                                        documents
•	 Compare contracts with daily market prices for mark
   to market valuations                                              •	 Invoicing on behalf of commodity vendor freight
                                                                        companies, self billing invoices or RCTI
•	 Contract Spreads across several delivery periods
                                                                     •	 Full integration with financial routines in Microsoft
•	 Quality based price adjustments (bonification)
                                                                        Dynamics AX
•	 Workflow rules for the generation of shipping documents
                                                                     •	 Optional Risk Management
•	 Advanced logistics with site scheduling, movement
                                                                     •	 Handling of multiple currencies
   instructions and load management




commodity trading Solution overview

Commodity Trading is fully integrated with Microsoft Dynamics AX. The Commodity
Trading solution leverages the existing functionality of Microsoft Dynamics AX to provide a
functionally rich solution for Commodity Trading organisations.

While different commodities or groups of commodities have their own unique
requirements the general functionality required by the different commodity Trading
companies is the same; contract administration, shipping/logistics, invoicing, etc. The
Scalable solution addresses these requirements as well as commodity specific functionality.

                                                                                                   It provides both the flexibility and
                                                                                                   control demanded by companies
                                                                                                   to ensure their buyers can procure
                                                                                                   successfully to aid lower costs,
                                                                                                   increase profitability and reduce
                                                                                                   risk.

                                                                                                   Access to real-time contract and
                                                                                                   logistics information allows for
                                                                                                   better communications, both
                                                                                                   internally within the organisation
                                                                                                   and with suppliers.
Commodity Trading                                                                                                                                                 3




main componentS of the trading Solution
The Trading solution components are divided into two                                        The diagram below outlines the key business requirements
main categories; Core and Optional. The Core components                                     covered by the trading solution.
are required by all trading companies and the optional
components will only be required by companies if they trade
certain commodities or require specialized functionality.

          PHYSICAL CONTRACT LIFESTYLE
  NEGOTIATIONS




                       Potential Contract   Contract Budgets      Deal Approved
                                                                                      Approved?               No Deal
                         Discussions          Calculated            Process




                       Record Contract
  TRADING




                                            Contract Approval     Prepare Contract      Send to                   Matching of
                       Details Including                           Documentation       Customer                    Contracts
                                                Process
                           Budgets




                       Contracts due for          Arrange
                                               Transportation     Prepare Logistics         Monitor Progress of         Details of shipment
                       Shipment/Delivery
   LOGISTICS




                                            including estimated    Documentation            Shipemtn/Delivery           or Delivery - Bill of
                                                    costs                                                                 Lading, Weight
                                                                                                                            Tickets etc
 MANGEMENT
    RISK




                                            Position Updates       Arrange Futures           Arrange Forex                                      Contract Profit
                                                                       Hedges                    Cover                                            Reporting
  FINANCIALS




                       Credit Checking/                                                                            Invoicing                    Contract Cost
                       Approval for Deal                                                                          Procedures                      Invoicing




                 core componentS                                                                      optional componentS


                 The Core components are:                                                             The Optional Components are:
                 •	 Contract Administration                                                           •	 Futures Contract Management

                 •	 Logistics Management                                                              •	 Options Contract Management

                 •	 Risk – Position and Valuation Reporting, Profit                                   •	 Foreign Exchange Contract Management
                    Reporting
                                                                                                      •	 Letter of Credit Management
                 •	 Invoicing – Sales, Purchase and Services
                                                                                                      •	 Trade and Credit Limit Monitoring
                 •	 Inventory Management
                                                                                                      •	 Invoicing – Provisional, Pre-payment, Pro-Forma
                 •	 Financial Integration
                                                                                                      •	 Logistics – Advanced includes Vessel
                 •	 Core Reporting Pack                                                                  Management and Document Production

                                                                                                      •	 Document Generation

                                                                                                      •	 Bids and Offers
Commodity Trading                                                 4



phySical contractS
Physical Contracts manage the purchase and sale of
commodities. From the initial booking of a physical contract
the solution can track the contract through the full life-cycle
including matching, hedging, shipping and invoicing of
contracts. All contracts are compared with Market Prices and
daily mark to market valuations prepared.



    The solution caters for the following for Physical
    Contracts:


    •	 Priced and Un-priced Contracts

    •	 Quantity and Price Unit Conversions (MT, Kgs, lbs,
       bu etc)

    •	 Quality specification unit price adjustments

    •	 Cost Calculations (Actual vs Budget)

    •	 Credit Insurance

    •	 Copy Contracts

    •	 Forex Integration

    •	 Forward Trade Integration

    •	 Commissions

    •	 Quotations

    •	 Contract Approval

    •	 Inter-company Trading

    •	 Credit Control

    •	 Database log of all actions
Commodity Trading                                                                                                                                                                       5



contract adminiStration
Contract Administration is the term used to deal with all aspects of contract creation and
the subsequent management of contracts.


                The functionality provided is:                                                                                      The following optional functionality is provided:



                •	 Short Contract Entry                                                                                             •	 Bonification

                •	 Contract Creation:                                                                                               •	 Traders Dashboard
                     o        From a Contract Template
                •	 Contract Amendment:

                     o        Contract Washouts
                     o        Contract Quality Specifications
                •	 Contract Cancellation

                •	 Contract Closing

                •	 Contract Re-Instate

                •	 Contract Confirmation

                •	 Contract On Costs

                •	 Contract Note Print

                •	 Contract History



The diagram below shows the main high level processes involved in Contract
Administration.

       CONTRACT ADMINISTRATION
 CONTRACT
  SHORT




                                               Enter Key Fields                E-Mail                 Prepare and                                         Update
                   Agree Contract                                                                                             Send e-mail
                                                 in contract                  Details?               review e-mail                                        position




                                                      No
 CONTRACT
 CREATION




                       Use             Yes                                                                Enter Contact
                                                   Select Template                                                                                        Update           No
                     Template?                                                                               Details                                      position



                                                     Yes
 AMENDMENT
  CONTRACT




                                                            No                   No                      No            Enter                                No
                   Select Contract             Cancel?               Close?                   Re-Open?                                      Re-confirm?              Reprint?
                                                                                                                     Amendments



                                                                                                                                                    Yes
 CONFIRMATION
  CONTRACT




                                         Yes                  Yes     Change Contract          Yes   Prepare Contract             Send to Counter
                     Review Contract            Acceptable?
                                                                          Status                          Note                         Party




                                                                                Yes

                            Can                                                                                    Can
 CHANGE
 STATUS




                                                                                                                                  No
                         contract be               Change Status               Update Position                  contract be                 Give warning                  End
                         cancelled?                                                                              closed?                      message


                                                                                         No
Commodity Trading                                                                                                               6



Short contract entry
This screen is used by a trader solely for the purpose of entering new contracts quickly. A
contract template may be specified which will define the layout of the printed contract
confirmation document. A contract is for either the purchase of or sale of commodities.

                                                                                              Within Microsoft Dynamics AX a
                                                                                              purchase contract is associated
                                                                                              to a vendor and a sales contract is
                                                                                              associated to a customer.
Commodity Trading                                                                                                                  7



contract management
A contract can be amended up until the time it is approved. Once the contact is approved
it can not be modified or deleted. Any adjustments to an approved contract are done by
creating a new version of the contract, which will be a copy of the original contract. This
will ensure that a history of all contractual adjustments is maintained, and that the original
contract can be reprinted at any time.

                                                                                                 The Contract Management screen
                                                                                                 shown provides the functionality
                                                                                                 to create; amend; approve; cancel;
                                                                                                 complete and re-open a contract.
                                                                                                 Functions available from this
                                                                                                 screen also enable the user to
                                                                                                 specify Contract Washouts; print
                                                                                                 the contract confirmation; create
                                                                                                 a new version of an approved
                                                                                                 contract; specify contract on-
                                                                                                 costs; specify the commodity
                                                                                                 quality requirements and the
                                                                                                 “Bonification”; review and adjust
                                                                                                 contract delivery spread.




Contracts may be spread across several delivery periods, whereby the parameters of the
contract - such as price - may vary. Each spread may be considered as a subcontract within
the primary contract.

                                                                                                 A default delivery spread is
                                                                                                 automatically created for the
                                                                                                 contract commodity based on the
                                                                                                 even distribution of the quantity
                                                                                                 to be delivered over the period
                                                                                                 of the sales contract. The default
                                                                                                 spread can then be adjusted
                                                                                                 manually in the screen to the left.
Commodity Trading                                                                                                                                8



contract waShoutS
A contract washout can occur when there are Buy and Sell contracts between parties
which loop back to a party involved in an earlier trade. Thus, the series of trades (Buy and
Sell contracts) have netted out the requirement for a physical delivery for a portion of the
contract.


                                       $31.00 Profit
               $248.00                                               $279.00
                                       Company A

                                                      Inv
                                     for                  oi
                                  ce                  $2 ce fo
                             Invoi 0                    9.0    r
                                    .0
                                 $2                         0
$4.00 Loss Company D                                               Company B $29.00 Loss
                              Inv
                                 oic
                               $2 e for
                                 .00


                                       Company C
               $252.00                                               $250.00

                                           $2.00 Profit




For example:

Company A sells to Company B, who sells to Company C, who                      Each quality specification may result in an adjustment to the
sells to Company D, who sells back to Company A. This loop                     price paid for the commodity.
means that no physical delivery need occur, and the trading
                                                                               Each load of commodity is tested and the results compared
contracts are netted out with the individual parties realising a
                                                                               with the contracted specifications. The system will
financial gain or loss on the trade. The gain or loss on the trade
                                                                               automatically calculate any price premiums (quality exceeded)
will have a financial impact only, and generates an invoice or
                                                                               or deductions (quality not met) for the load. The resulting
payment to all the parties involved in the washout.
                                                                               adjustments will be reflected in the cost of the commodity for
The washout could finalise a portion of or the entire originating              inventory valuation and for invoicing purposes.
contract. If the whole contract is washed out there would be
no loads. If only a portion of the contact is washed out, then
the remaining quantity of the contract would be processed via                  trader daShboard
normal logistics procedures.
                                                                               Traders need to see a snapshot of information relevant to the
                                                                               trades they have or are in the process of making. The Trader’s
                                                                               Dashboard allows them to use one screen to see summary
Quality price adjuStmentS                                                      real-time information relating to sales and purchase contracts,
Commodities are bought to an agreed quality specification. The                 shipments, invoices, budgets etc.
quality specification may be a recognised industry standard or
agreed on a contract by contract basis.

The quality specifications are used as measures to determine
if the commodity supplied meets or exceeds the contracted
quality.
Commodity Trading                                                                                                                                         9



logiSticS & Shipping
Once a Buy or Sell contract has been entered into Commodity                           The solution allows for partial delivery contracts with multiple
Trading it immediately becomes available to the Logistics/                            deliveries over a period of time. Outstanding contract and
Operations department for creation of commodity movements.                            logistic file balances are tracked.
Workflow rules enable timely generation of shipping
                                                                                      The objective of Logistics & Shipping is to ensure that the
documents. Shipments can be found based on shipping
                                                                                      commodity contracts are executed in a timely manner.
marks or container number. It will generate all key logistics
                                                                                      Logistics, sometimes referred to as Shipping, Transport or
documents including Shipping Instructions, Shipping Advice,
                                                                                      Execution, needs to consider where a commodity is coming
Customs Declaration, Sample Orders, Delivery Orders, Pro-
                                                                                      from and to where it is to be delivered and ensure it can be
forma Invoices and Final Invoices.
                                                                                      done in the most efficient and cost effective manner.




                   The following functionality is provided as part of the                  The following optional functionality is provided:
                   Core Trading solution:


                   •	 Contract Allocations                                                 •	 Logistics – Advanced includes Vessel
                                                                                              Management and Document Production
                   •	 Logistics Schedule

                   •	 Movement Instructions

                   •	 Contract Loads




The diagram below shows the main high level processes
involved in Logistics & Shipping.


          LOGISTICS AND SHIPPING
 PROCUREMENT
   TRADING/




                                                                    Manufacturing
                                                                                      Source of information for Logistics comes from
                                             Contract Allocation      Demand          Trading.
                       Contracts Created
                                                  Optional         (Organisational    Allocation routine has to be available to Trading.
                                                                       Level)
 SITE SCHEDULING
    LOGISTICS/




                       Contract Allocation     Create Transport    Create Transport        Transport             Sent to Counter           Load Details
                            Optional               Details            Document              Details                  Parties                Recorded
    FINANCIALS




                         Produce Sales        Process Purchase
                            Invoices              Invoices
Commodity Trading                                                                                                              10



contract allocationS
Depending on the Trading organisation the Logistics department may have full
responsibility for deciding which contracts to use to satisfy other contracts or inventory
requirements. Alternatively in other organizations the Trading department decides how the
physical contracts have to be allocated and pass that information on to Logistics who then
take over responsibility.

                                                                                             The Create Allocations screen
                                                                                             shown provides the functionality
                                                                                             to allocate a Sell Contract to a Buy
                                                                                             Contract. Similar screens provide
                                                                                             functionality to allocate Buy
                                                                                             Contract to Inventory, Inventory
                                                                                             to Sell Contract or Inventory to
                                                                                             Inventory (commodity transfer).




Once a Contract Allocation has been created it may be viewed in the Allocations screen as
shown below.
Commodity Trading                                                                                                            11



logiSticS Schedule
A Logistics Schedule shows an overview of the commodities on Buy and Sell contracts and
inventory that have to be moved or shipped between certain dates.

The information on the logistics Schedule will be used by the shipping/logistics
department to arrange the collection and delivery of the commodities. Each arrangement
will have one or more Movement Instructions associated with it.

A Movement Instruction provides details of the commodities to be moved to the parties
involved in the shipping of the commodity. The movement instruction will be sent to the
transport company and/or the vendor, customer or store. A Movement Instruction may
have multiple contracts or inventory holdings associated with it.

                                                                                          A Movement Instruction will
                                                                                          itself have a number of loads
                                                                                          associated with it. A load may be
                                                                                          a truck, container, vessel etc. Load
                                                                                          details will be recorded from the
                                                                                          information provided on a weight
                                                                                          ticket, bill of lading or dispatch or
                                                                                          receipt note.

                                                                                          An integral part of the Logistics
                                                                                          module is the set up and
                                                                                          management of Logistics
                                                                                          documents. A standard set is
                                                                                          provided but may be modified to
                                                                                          suit the individual client.




movement inStructionS
Movement Instructions contain the details required by the parties involved in the
transportation of the commodities. A Movement Instruction may refer to multiple
contracts. Movement Instruction documents may be produced and sent to the transport
company, the vendor, customer and warehouse.

                                                                                          Movement Instructions may
                                                                                          be created using the Contract
                                                                                          Delivery spread details, allocations
                                                                                          or logistics schedules.

                                                                                          The Generate Loads button
                                                                                          may be used to create the loads
                                                                                          associated with the Movement
                                                                                          Instruction line. This optional
                                                                                          function will be when the size of
                                                                                          the loads is known e.g. 25mt or 40’
                                                                                          container.
Commodity Trading                                                                                                                     12



load management                                                      contract loadS
Loads are the level at which the actual movements of the             Load details created by the Movement Instructions
commodity take place. There may be many loads associated             functionality are managed using the Contract Loads screen
with a movement instruction.                                         shown below. Contract Loads functionality is used to record
                                                                     transportation and weighbridge details; record quality test
Loads may be generated by the system as part of the
                                                                     results and optionally calculate “Bonification”; generate Load
Movement Instruction functionality and then amended
                                                                     Financial Summary report.
when the actual weight is known. Alternatively loads may be
recorded once the actual shipment/delivery has taken place. A        Functions available from Contract Loads enable a load to
load always has two sides associated with it – a ‘From’ side and     be ‘Confirmed’; ‘Re-opened’; ‘Posted’ and ‘Reverse Load’. The
a ‘To’ side. The From side will refer to either a Buy Contract or    posting function updates Dynamics AX to create a sales order
Inventory holding and the To side will refer to a Sell contract or   and invoice for the sales contract and a purchase order for the
an Inventory holding.                                                purchase contract. A recipient created tax invoice (RCTI) may
                                                                     also be created at this time.
Each load may have quality results recorded and depending on
how those results compare with the contracted specifications
price adjustments may be calculated (Bonifications).

Once a Load has been confirmed the cost and revenue
information will be passed (posted) to the Dynamics AX
financial systems for subsequent invoice processing.

The costs related to a load are dependent on the On-costs
recorded for the Contract delivery spread.
Commodity Trading                                                                                                                 13



vendor levieS
Management Levies are collected from some vendors on behalf
of certain government agencies. A levy could either be a fixed
amount per tonne or a percentage per tonne.

The levies that are applicable to a load may be overridden at
the time of creating the load.




invoice production

      The following functionality is provided as part of the         The following optional functionality is provided:
      Core Trading solution:


      •	 Sales Invoice production                                    •	 Invoicing – Provisional, Pre-payment, Pro-Forma

      •	 RCTI invoice production for Commodity

      •	 Debit/Credit Note production for On-Costs

      •	 Recording of Commodity Invoices from Vendors

      •	 Recording of On-Cost Invoices from Vendors

      •	 Broker Commission Invoice Production




The Invoicing processes use the contract load information        The system provides the facility to prepare credit note for loads
to either prepare invoices or to check the values of the         that are cancelled.
commodity purchase invoices.
                                                                 Debit and credit notes may be produced for On-Costs or
The system provides the ability to produce invoices on behalf    miscellaneous services provided.
of the commodity vendors or freight companies – self-billing
                                                                 Standard Dynamics AX invoicing procedures are used as far as
invoices or RCTI. This is determined from the Counter-Party
                                                                 is possible. This leverages the financial integration routines that
record.
                                                                 already exist with Microsoft Dynamics AX.
Commodity Trading                                                                                                             14



riSK management
Risk Management is one of the key functions in a Trading
organization. In some organizations it is a separate department
and in others the function is covered by a combination of
Trading and Financial departments.


      The following functionality is provided as part of the              The following optional functionality is provided:
      Core Trading solution:


      •	 Position reporting                                               •	 Futures Contract Management

      •	 Mark to Market report                                            •	 Options Contract Management

                                                                          •	 Foreign Exchange Contract Management

                                                                          •	 Letter of Credit Management

                                                                          •	 Trade and Credit Limit Monitoring

                                                                          •	 Risk DashBoard




poSition reporting
Each trading organization has its own definition of what is included or excluded from position reporting.
The trading system is designed to be sufficiently flexible to satisfy the different definitions. The report
example below shows summary position for selected criteria.
Commodity Trading                                                                                                                     15



marK to marKet reporting
The Mark to Market report is used to determine the theoretical profit or loss of all the Open
contracts if the company had to liquidate its position immediately on the spot market.

The Commodity Trade solution allows the client to define their own market parities. A
parity code may be associated with each contract. Mark-to-market period prices are either
entered or generated.

The Mark to Market report uses the Parity code and the associated prices to produce the
information.
                                                                                                  The report will calculate the
                                                                                                  contract value for the quantity
                                                                                                  basis selected. It will use the Parity
                                                                                                  Code price for the appropriate
                                                                                                  period to calculate the Market
                                                                                                  value of that quantity and then
                                                                                                  determine the Profit or loss for
                                                                                                  each contract.

                                                                                                  The contract value calculated
                                                                                                  will include any On-cost values
                                                                                                  estimated for the contract.




contract profit reporting
Contract Profit report is used during the duration of a contract           The following functionality is provided for the Futures
to track its performance against its estimated profitability.              and Options Modules:
Estimated profitability is based on the estimated costs in the
contract records whereas profit performance is based on the
actual costs incurred by contract loads.                                   •	 Futures Exchange Maintenance

                                                                           •	 Futures Contract Maintenance
                                                                           •	 Futures Close Out
futureS and optionS contract
management                                                                 •	 Futures – Physical Hedging

Futures and Options contracts are financial instruments, known             •	 Futures – Price Fixing for Physical contracts
as derivatives, used by commodity trading companies to help                •	 Futures to Physical Conversion
manage Risk. They are traded on Futures Exchanges or Markets.
Different exchanges will trade different commodities.                      •	 Options Contract Maintenance

A Future is an agreement to buy or sell a given quantity of a              •	 Exercise Options Contract
commodity, at a specified future date, at a pre-agreed price.              •	 Lapse Routine for Option Contracts
An Option gives the holder the right, but not the obligation, to
buy(Call) or sell(put) a specified underlying futures contract at
a pre-agreed price on or before a given date. The majority of
Option contracts are not exercised and do not become Futures
contracts.
Commodity Trading                    16



futureS exchange
maintenance
Any number of Future Exchanges
may be set up.




The commodities traded by each
exchange may be defined by
using the ‘Commodities’ button.




futureS and optionS
contractS
Trades on futures exchanges may
be entered on a daily basis. Both.
Futures and Options contracts may
be recorded. The example below
shows the entry of a Futures
Contract. A Futures Contract may
also be entered and hedging
defined directly from a Physical
Contract.
Commodity Trading                                                                                                      17



futureS – phySical
hedging
The ability to match or hedge
futures and options contracts with
physical contracts is provided. It
is also possible to update hedge
quantity from a futures or physical
contract.




futureS cloSe out
The ability to close a future
contract by entering or generating
and offset transaction is provided.




foreign exchange contract
management                                                       The functionality provided by this module includes:

This functionality is designed to be used in conjunction with
the Trading solution, not as a stand-alone Foreign Exchange
                                                                 •	 Foreign Exchange Contract Maintenance
trading module. It enables a Trading organization to have a
foreign exchange risk strategy in place to monitor and manage    •	 Foreign Exchange Contract Allocation
currency exposures arising from forward physical contracts,      •	 Foreign Exchange Contract Maturity
some of the On-Costs associated with a contract or Futures and
Options contracts.                                               •	 Foreign Exchange Contract Position

In a similar manner to Futures Contracts the system records
foreign exchange contracts and allows physical and futures
contracts to be allocated against one or more foreign exchange
contracts.
Commodity Trading                                                                                                              18



letterS of credit                                                  riSK daShboard
The Letters of Credit module allows details of valid letters       Risk Managers need to see a snapshot of information relevant
of credit to be managed and monitored by the system. The           to the risk exposure they have and the strategies in place to
information held for a letter of credit includes LC Value, Bank    minimise that risk. The Risk Dashboard option allows them to
Details, Expiry date and current usage for the LC. Physical        use one screen to see summary real-time information relating
Contracts may be allocated to specific Letters of Credit and the   to futures and option contracts, contract hedging, foreign
LC usage updated.                                                  exchange position etc.



trade and credit limit reporting                                   commodity trading reportS
The credit limits set for customers in Microsoft Dynamics           A set of reports is provided to meet the most common
AX financials is used in the commodity trading system. In          reporting requirements, including the following:
addition a series of user-defined parameters may be set to         •	 Open Contract Report
monitor various trading limits. The trading limits may apply
to customers, vendors, commodities, groups of commodities,         •	 Contracts Due for Delivery/Shipment within xx Days
Traders etc.                                                       •	 Unmatched Contract Report
These limits reflect the level of exposure or risk a trading       •	 Matched Contract Report
organization is prepared to carry.
                                                                   •	 Logistics File Summary
The limits are monitored and updated at various stages
                                                                   •	 Logistics File Balance Report
through out the contract lifecycle. Depending on the rules
defined the system will either provide a series of alerts to       •	 Contract Load Report
appropriate personnel or will prevent the user from processing
                                                                   •	 Contract Profit Report
the transaction.
Commodity Trading                                                                                                                              19



Scalable data SyStemS                                                      our achievementS
For over 25 years Scalable Data Systems has been developing                2008 – Largest Microsoft Australia ERP Sale (Process Industry)
software solutions. In that time we have grown to become
                                                                           2008 – Microsoft Presidents Club
Australia’s leading Microsoft Dynamics® AX Partner within the
manufacturing and supply chain environment.                                2007 – Finalist Dynamics AX ERP Solution of the Year

Internationally we operate through the AxPact World Alliance,              2006 – # 1 Partner new business AX Dynamics
an invitation-only global organisation that pools together                 2006 – Finalist, Dynamics AX ERP Solution of the Year
the very best Microsoft Dynamics AX expertise from around
the world. As an AxPact member we are able to draw upon a                  2004 – MBS ERP Solution Partner of the year
worldwide network of consulting and development resources
to deliver solutions in more than 75 countries and in over 20
languages.

This means that regardless of whether your project is local or
global, Scalable offers the assurance of:

•	 A single point of contact and responsibility.

•	 Consistent methodologies, configuration and service
   standards across all locations.

•	 Professional maintenance and support for all sites.

•	 High-value business solutions built with superior
   technology.




for more information:
CALL 1300 650 499 or logon to www.scalable.com.au




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