Setting Up Interest to Calculate on Deferred Payments at Settlement Time

Steps Involved

1. Setup Discount Code for Interest.

2. Create Discount Table for rate percentage.

3. Attach Discount Table to Contract.

4. Produce a Final Settlement after delivery of grain.

Setup Discount Code for Interest

Go to Commodity Tables, Select Discount Codes and then enter a discount code to be used for Interest.

Enter in a Description for the Discount/Premium Code. This description is what will print on the Settlement Sheet. Make sure the answer to Enter Discount/Premium Tables by Commodity Code and the answer to Include in Calculation of Value Amount is set to a N = No. In the Discount/Premium Type Select 5. All other fields can be left as is. Click on OK. Enter a Default Start and End Date. Note, these default start and end dates can be overridden when adding the Discount Code to a Contract.

Create Discount Table for Rate Percentage

Go to Commodity Tables, Discount Tables and Select 1) Add New Discount Tables. Enter the code that was created for interest.

Enter a Discount Table Code. A different table needs to be set up for each different percentage rate that will be used. Set effective date as needed and click on OK.

Change Discount Table Description appropriately. Enter in 1 for Flat Rate Table as the Rate Method and then click on OK to proceed.




Enter a Rate for the Interest, enter a Rate Type of I = Interest Percent. Enter a Discount/Premium of 2.
Attach Discount Table to Contract

On the Pricing screen select Settlement Discounts.

Click on the Insert button.

Enter the Discount Code for Interest and click on OK.

Enter in or search to select the appropriate table. Enter in your Interest Start and End Dates. Select OK

Complete the entry or Edit of the Contract.
Produce a Final Settlement

For example purposes I created a delivery sheet for the 10,000.00 bushels applied to the Contract created above. The average date of delivery in this example is 06/07/2019. The Contract has a Deferred Payment Date of 01/02/2020.




When the Final Settlement is processed the Interest will be added as shown in the above screen print.