Over Under Applied Contracts

When applying Tickets to Contract, there is an ability to Overfill the Contract or choose to Underfill a Contract.

To Overfill a Contract, when Applying to a Contract, after picking the Contract, the system will show the amount open on that Contract. To Overfill, replace the Open Contract amount, “54.52” bu with the amount of the Ticket “950.00”.

Open

1. The result of doing this to the Hedge Position is, it reduced Open Contracts by “54.52” bu & creates an Overfill quantity of the difference of “895.50”. This “895.50” bu is to keep the Cash/Basis Position even until a Price decision has been made on this Overfill.

2. Until it has been decided if the Overfill is to be Priced at Contract Price or a negotiated new Price, there is no change to Cash/Basis Positions.

3. To remove the amount in the Overfill category of the Hedge Position there are 2 options.

   1. Choosing to Price at the original Contract Price, the bushels need to be put on a Delivery Sheet & then Final Settled. At Settlement time a confirmation will pop up asking to “Price Over-Applied Bushels at Contract Price”? Entering on through & finishing the Settlement assumes Yes to that question. The Overfill amount on the Hedge Position now drops off & the Cash/Basis position changes by the amount of the Overfill, goes Long for Purchase, or Short for a Sale.

   2. Choosing to Price at a different Price than original Contract Price, the user must do Contracts > Price Contracts > enter the Contract Number & the Overfill bushels will appear & a question “Are You Pricing Over-Applied Bushels”, answer Yes, and continue on to the Pricing Page to enter the New Price & Save. This will make the Overfill amount on the Hedge Position drop off & the Cash/Basis position changes by the amount of the Overfill, Long for a Purchase, or Short for a Sale.

4. To Underfill a Contract, when Applying Tickets, the system shows you the amount you are Applying & if it’s less than what is open, it will give you the option to Underfill as shown here.

Open

1. The result of doing this to the Hedge Position is, it reduces the Open Contracts by “978.24” bu & creates an Underfill quantity on the Hedge Position for the amount remaining on the Contract “21.76” bu. This “21.76” bu keeps the Cash/Basis position even until a Price decision is made on the Underfill.

2. Until it has been decided if the Underfill is to be Priced at Contract Price or a negotiated new Price, there is no change to Cash/Basis Positions.

3. Additional impact of selecting Underfill at this time, it prevents any additional Applications to this Contract.

4. To remove the Underfill category from the Hedge Position a Contract Cancellation must be done, Contracts > Cancel Contracts. At this time it can be Cancelled at Contract Price, no Delivery Sheet produced, and now the Cash/Basis position changes, Short for a Purchase, Long for a Sale. It can also be Cancelled for a Price difference to where a Delivery Sheet would be produced & a Final Settlement would be done to create either a Payable or Receivable. This also changes the Cash/Basis position, Short for a Purchase, Long for a Sale.