Contract Costings Training Document
*Note: Multi Unit of Measure needs to be setup prior to Contract Costings. Multi Unit of Measure Setup is included in the Multi UOM Training document.
Table of Contents
Getting Started:
1. Extended Options
2. Security
New Price Fields Added to Contract
Commodity Tables – Default Values for Contract Costings:
Subtotal Setup
Contract Costings Templates:
1. Contract Costings Template Hierarchy Setup
2. Create Contract Costing Template
Contract Entry – Contract Costings
1. Pull Contract Costings from Template
2. Insert Contract Costings Manually
Create A/P Vouchers for Costings Setup on Contract
1. Security
2. Create A/P Vouchers for contract costings
3. View Contract Costings Sent to A/P on Tickets
4. SJI Mapping for Costings
5. Other Considerations
Settlement Process Contract Costings
1. Settlement Forms Design – Option to Print Origin Price and Costing Details
2. Settlement Process – remove unused costing elements from contracts
Journal Entries for Contract Costings
1. Setup
2. SJI Contract Costing Mapping
3. SJI Entry – Process Discounts Included In Contract Price? = No
4. SJI Entry – Process Discounts Included In Contract Price = Yes
5. Web Services Settlement Extract with Costing Details
Other Changes

Getting Started:

Extended Options – The new extended option needs to be turned on

Menu Path: Maintenance – Dataset Maintenance - Extended Options – GRN – Contract Costings 25

Security – The following Security Options have been added

Menu Path: Customize – System Security

GRN – Payable Expenses – Contract Costing Expense (this is a new menu option that includes Freight Expense and Contract Costing Expense)
GRN – Setup Information – Unit of Measure

New Price Fields Added to Contract

The following new fields will be available:
Origin Price
Origin Basis
Destination Price
Destination Basis
Menu Path: GRN – Contracts – Contract Maintenance – Delivery / Price Schedules
The four new fields will be available under the enhanced Discounts/Costing features within the "Settlement Discounts" button on this screen.

Included In (with Description displayed)
1 = Origin Price - This is a cost that may be used to create an A/P voucher, but will not be added or subtracted from the customer's contract price or settlement (it is already included in the Origin Price of the contract).
2 = Contract Price – This option specifies that the costing is already included in the quoted Contract Price, but is not in the Origin Price. It will be backed out to arrive at the Origin Price.
3 = Destination Price – This option specifies that the costing is included in the Destination Price, but it is not included in the quoted Contract Price. It will be used to determine the Destination Price.
4 = Additional Charge - this will be a charge that will be used at invoice time, but will not be used in the calculations of the Origin or Destination Prices.

Commodity Tables – Default Values for Contract Costings:

Commodity Tables - setup default values by Discount/Costing when not pulled in from a template
1. Costing Rate
2. Costing Rate UOM
3. Costing Rate Currency (not used in initial project)
4. Subtotal grouping
5. Subtotal Sequence within each subtotal group
6. "Combine With" Discount Code
7. Calculation Type (part of the price, additional charge, or for ledger only)
8. Remark
9. Y/N option to print remark on the settlement
10. Vendor Name ID
11. Actual/Estimate status
12. Voucher Type (only on discount setup; not changed on each contract)
13. A/P Voucher created based on contracted quantity, applied quantity, or neither.
Menu Path: GRN – Commodity Tables – Discount Codes

Default Costing Rate	This is the default rate, with 5 decimals of numeric precision. Zero is allowed.
Costing Rate Type	N = Do Not Use for Costings A = Per Gross Quantity B = Per Net Applied Quantity C = Per Contract Quantity 3 = Cents Per Gross Quantity 4 = Cents Per Net Quantity 6 = Flat Charge Per Settlement 7 = Flat Charge Per Contract
Costing Rate UOM	Enter the UOM related to the rate. The valid values are the defined UOM Codes that have been setup.
Default Internal Remark	Enter up to 70 characters for the default remark value. This remark will not print on the settlement form.
Default External Remark	Enter up to 70 characters for the default remark value. This remark will not print on the settlement form.
Voucher Status	A = Actual E = Estimate N = No Voucher (Do Not Create Voucher) I = Inactive (Do not create voucher or customer charge-back)
Roll Up Cost Into Price Field	This allows you to optionally use the existing price fields to "roll-up" multiple Contract Costing types into the existing 15 miscellaneous price fields (for additional reporting purposes). The valid values are: 4 = Freight 5 = Brokerage 6 = Other 7-18 = The 12 user-defined contract price fields
Voucher Type	Choose from the valid Voucher Types that have been set up in the Accounts Payable System.
Vendor Name ID	Choose from the valid vendors that have been set up in the Name/Address System.
Purchase Discount / Premium	1 = Discount (you will pay the customer less) 2 = Premium (you will pay the customer more)
Purchase Include In	1 = Origin Price 2 = Contract Price (not in Origin Price) 2 = Destination Price (not in Contract Price) 3 = Additional Charge (not in Destination Price)
Purchase Combine With	Enter the Discount/Costing Code to combine this charge with (on the settlement form). $ = Combine with the Contract Price; do not show as a separate discount line on the settlement.
Sales Discount / Premium	1 = Discount (you will pay the customer less) 2 = Premium (you will pay the customer more)
Sales Include In	1 = Origin Price 2 = Contract Price (not in Origin Price) 2 = Destination Price (not in Contract Price) 3 = Additional Charge (not in Destination Price)
Sales Combine With	Enter the Discount/Costing Code to combine this charge with (on the settlement form). $ = Combine with the Contract Price; do not show as a separate discount line on the settlement.

Subtotal Setup

Menu Path: GRN – Setup Information – Settlement Information
Setup any user defined Settlement Subtotals to be used with the contract costings.

Suppress Last Subtotal Line Starting With Group Level allows the user to set the system to not print a sub total for any discounts/premiums that are assigned to those groups that are suppressed.

Contract Costings Templates:

Provides the ability to:

Setup option to specify the hierarchy of the templates, based on the associated data elements. This will allow the system to choose the expected template and default the costing information more efficiently.
Create Contract Costing Templates with an association of multiple data elements.

Ability to default the costings from the templates during the process of adding a new Purchase or Sales contract.

Contract Costings Template Hierarchy Setup

Menu Path: GRN – Setup Information – Contract Information

The above list of fields are the available data elements that can be matched in order to default the appropriate contract costing templates. This setup screen allows the instructions to the system about which fields are more important than the others when pulling in the appropriate contract template.
1 = Highest Priority
99 = Lowest Priority
For example, when setting up contract costing templates, if you're always specifying an Inventory Location, Commodity, and Contract Name ID, then those fields would be setup as the highest priority.
A template will have the ability to specify the associated data fields, and leave most of the other fields blank
When a new contract is entered, the data elements on the new contract will be compared against all of the templates to determine which template is the most appropriate to default.
The priorities supplied on this setup screen will help determine which template is more appropriate in the case that the fields on the new contract match all of the fields on multiple templates.
Example:
A template is set up with a specific Commodity "CN" and a specific Contract Name ID (ABC).
Another template is set up with Commodity "CN" and a specific Shipper Name ID (XYZ).
A new contract is entered for commodity CN, and Contract Name ID ABC, and Shipper Name ID XYZ.
Since the data fields that have been entered on the contract match exactly to all of the fields on the templates, the setup hierarchy will help determine which template is more appropriate. In this example, is more of a priority to match on the Contract Name ID, or more important to match on the Shipper Name ID. The hierarchy setup screen will determine which template to use. If Contract Name ID is a higher priority than Shipper Name ID, then the template that is associated with the Contract Name ID will be used.

Create Contract Costing Template

Create Contract Costing Templates with an association of multiple data elements.
Menu Path: GRN – Contracts – Contract Maintenance – Add New Contract

Setup Contract Template with all fields populated to use to match based on the Contract Costing Template Hierarchy.
Add Contract Costings for the Contract Template

Contract Entry – Contract Costings

When a new contract is being added, the discount/costing details will initially be blank. This allows you to decide what action you want to take next.
All three of the prices begin with the quoted Contract Price from the previous screen. As costings are added here, the Origin and Destination Prices will automatically be calculated.
You can choose to:

Press Enter or click the Template button (or Alt-T) to choose a template of contract costings.
Click or tab to the Insert button (or Alt-I) to begin entering costings manually.
Click or tab to the Back button (or Alt-B ) to do no further data entry at this time.

Pull Contract Costings from Template

The templates will be listed in the order of priority. Press Enter to choose the defaulted "highest priority" template, or choose a different template from the list.
The Priority column will be calculated using this method:
In the example above, the maximum number of matched fields for all templates = 7 (the first template).
For all templates, the priority of all matched fields will be added together.
If a template has less than the maximum number of matched fields, then it will use the next lowest possible priority for the remaining fields. The "next lowest priority" in this example is 14 (13 + 1).

This is based on the Priority setup.

Insert Contract Costings Manually

Discount Code	Enter the Discount Code, or choose from the list of available discount codes by using the search icon (or enter * to search). The only discount codes that will appear in the search list are the ones that have had costing default information setup under Commodity Tables, Discount Codes
Rate	This is the default rate, with 5 decimals of numeric precision. Zero is allowed.
Costing Rate UOM	Enter the UOM related to the rate. The valid values are the defined UOM Codes that have been setup.
Costing Rate Type	A = Per Gross Quantity B = Per Net Applied Quantity C = Per Contract Quantity 0 = Percent of Value 3 = Cents Per Gross Quantity 4 = Cents Per Net Quantity 5 = Percent of Contract Price 6 = Flat Charge Per Settlement 7 = Flat Charge Per Contract
Discount/Premium	1 = Discount (The settlement will be reduced by this amount) 2 = Premium (The settlement will be increased by this amount)
Included In	1 = Origin Price - This is a cost that may be used to create an A/P voucher, but will not be added or subtracted from the customer's contract price or settlement (it is already included in the Origin Price of the contract). 2 = Contract Price – This option specifies that the costing is already included in the quoted Contract Price, but is not in the Origin Price. It will be backed out to arrive at the Origin Price. 3 = Destination Price – This option specifies that the costing is included in the Destination Price, but it is not included in the quoted Contract Price. It will be used to determine the Destination Price. 4 = Additional Charge - this will be a charge that will be used at invoice time, but will not be used in the calculations of the Origin or Destination Prices.
Discount Table	If this discount is an Additional Charge to be calculated at Settlement time, then a discount table code can be entered here. The rate will then be determined at the time of the settlement.
Combine With	Ability to specify another discount/premium code to combine/hide this cost on the invoice. Multiple discounts/premiums can be "rolled-up" into one line.
Sub Total Print Sequence	Sub Total is the group this costing is grouped with for a sub total. The sequence number specifies the order of the discounts to be printed within each group.
Customer Remark	Ability to enter an optional customer remark for each contract costing, that will be available for printing on the settlement/invoice
A/P Voucher
Voucher Status	A = Actual E = Estimate N = No Voucher (this will adjust the prices or settlement, but will not create an A/P Voucher) I = Inactive (do not use this costing for any A/P or customer calculation)
Voucher Name ID	Costing have the ability to create an Accounts Payable Voucher (based on the Voucher Status field). The Vendor Name ID must be supplied in order to create the A/P Voucher.
Vender Reference Number	The Vendor's reference number for each costing, is passed to the A/P Voucher and available to print on the check stub
Internal Remark	An optional remark for each contract costing for internal use only – not to be printed on the settlement form for the customer to see

Create A/P Vouchers for Costings Setup on Contract

Provides the ability to:

Create A/P vouchers for contract costings that have been setup in contract maintenance
Create A/P vouchers in a separate process, so that customer settlements can be created before the A/P vouchers to the vendors, or vice-versa
When reversing a customer settlement does not require that the A/P vouchers also be reversed
When reversing a vendor's A/P voucher does not require that the customer's settlement also be reversed

Security

Menu Path: Customize – System Security – Commodity – Payable Expenses

Create A/P Vouchers for contract costings

Menu Path: Payable Expenses – Contract Costing Expenses

Note: At time of voucher creation the user can specify Due Date or Voucher Terms

View Contract Costings Sent to A/P on Tickets

Menu Path: GRN – Shipments – View or Edit Tickets
Freight
Note: Can also view Contract Costing Expenses through Customer Status
Menu Path: GRN – Customer Status – Customer Status

SJI Mapping for Costings

The mapping of the contract costings General Ledger Accounts that is set up in the SJI System (System Journal Interface), will control which ledger accounts are used when the A/P Vouchers are created.
Menu Path: SJI – System Accounts – Commodity Settlements

Example: Costing D1

Other Considerations

Reversal of Contract Costing Vouchers
Reverse A Ticket: prevent the reversing of a ticket if the Contract Costings have already been created
Purge Ticket: Do not purge ticket if contract costings have not yet been created

Settlement Process Contract Costings

From the user's perspective, the settlement process for vessel purchase and sales transactions will navigate the same as all other settlements. This includes Advance Settlements, Final Settlements, and Discount.
Changes were made make sure the Contract Costings entered on the contracts and specified to be passed back to the customer calculate properly and be displayed in the discount/premium area of the settlement process. Each Costing that is Not included in the contract price will be listed here, along with the total dollar amount of all contracts on this settlement.
The prices displayed on this screen are the contract prices quoted to the customer.
The "Extension" is the total of the quoted contract prices times the quantity (Bushels, Metric Tons, etc).

Settlement Forms Design – Option to Print Origin Price and Costing Details

Menu Paths:

GRN – Forms Manager – Settlement Forms – User Defined Forms
GRN – Forms Manager – Check Forms – User Defined Forms
GRN – Forms Manager – Receipt Forms – User Defined Forms
GRN – Forms Manager – Voucher Forms – User Defined Forms
GRN – Forms Manager – Invoice Forms – User Defined Forms

A new Y/N option was added to specify if you want the form to show the Origin Price, and all the discounts/charges that are "Included In The Contract Price".
The current system starts with the Contract Price and displays all discounts/charges that are Not already included in the Contract Price. The enhancement here is to provide a feature to print the Origin Price and all of the discounts/charges between the Origin Price and the Contract Price.
A "Y" response will result in the following form changes on each delivery/contract line:

The "Price" field on the delivery/contract lines will change from the Contract Price to the Origin Price.
"Extension" fields will be the Contract Price extension minus all costings "Included in Contract Price".
New lines will be included to show the discounts/charges between the Origin Price and Contract Price.
The weighted average price of each discount will be included.
The total of the weighted average discount prices will be included in the discount subtotal lines.
The "Discount Total" fields will include the current totals for all discounts that are specified as "Included In Destination Price", "Additional Charges", as well as the costings that are specified as "Included in Contract Price".

The total dollar amount of the settlement/invoice will not change when this response is set to either "Y" or "N".
For any settlement, one form could be printed starting with the Contract Prices, without showing the Origin Prices, and another form could be printed to start with the Origin Prices to work up to the Final Price. The
total dollar amount will be the same on each, regardless of which option is chosen.
A new Y/N option was added to specify if you want the form to print Discount Sub Totals for Each Delivery Sheet. This option will print individual breakout of discounts for each Delivery Sheet on the settlement.

Settlement Examples Different Print Options same Settlement Information
Settlement Invoice Form Example:

Print Discount Subtotals for Each Delivery Sheet = N
Print Discounts Included in Contract Price = N

Settlement Invoice Form Example:

Print Discount Subtotals for Each Delivery Sheet = Y
Print Discounts Included in Contract Price = Y

Contract Costing Details – Reviewing the costing setup on the contract will indicate the sub totaling, sequence and discount detail printed.

Settlement Process – remove unused costing elements from contracts

When the final settlement is created for a contract delivery schedule, all of the unused costings will be removed from the contract. This will help clean-up and reduce the size of the database. The costings that were used will still be available for any additional contract reporting.

Journal Entries for Contract Costings

The current System Journal creation process begins with a Commodity Purchase/Sale entry based on the Contract Price. The system now allows the journal entry process will be to begin with the Purchase/Sale entry based on the Contract Price minus all costings that have been specified to already be included in the Contract Price or Origin Price. Each of the costings can be coded to a separate ledger account.

Setup

A new setup question has been added to allow the System Journal Entries to be created based on the Origin Price and all the Costings.
Menu Path: SJI – Setup Information – System Integration
If Commodity Settlement Transactions Yes then get this additional screen

SJI Contract Costing Mapping

Menu Path: SJI – System Accounts – Commodity Settlements

SJI Entry – Process Discounts Included In Contract Price? = No

*Note this is the SJI entry for the Settlement Form Examples Above

SJI Entry – Process Discounts Included In Contract Price = Yes

Web Services Settlement Extract with Costing Details

The G/L distributions node of the Purchase and Sales Settlement xml extract of the AGRIS Web Service has been updated to publish the costing details included in the Contract Price.

Other Changes

New available fields on text-based user-defined contract reports for contract costing details

Origin and Destination price fields will be available for the user-defined contract reports
New contract costing fields available during contract entry will also be new available fields within the Contract Report Manager
Note: No additional standard reports will be created, but the fields will be available to display on user-defined purchase and sales contract reports

Contract costings amounts to be added to the Delivery Sheet reports

The costings that are included in the Origin Price and Contract Price will available to print on Delivery Sheet reports, exports, and spreadsheets
Note: The costings that are NOT included in the Contract Price are already available to be printed on the Delivery Sheet reports

Contract costings amounts to be added to the Settlement reports

The costings that are included in the Origin Price and Contract Price will available to print on Settlement reports, exports, and spreadsheets
Note: The costings that are NOT included in the Contract Price are already available to be printed on the Settlement reports

Contract costings included in the standard contract export/import

The standard contract export will be enhanced to create the costing details in the export file
The import process will accept the import of contract costing details

New graphic Advanced Report for contract costings

A new standard Graphic Contract costing report will be produced that summarizes the costings that have not yet been sent to the Accounts Payable System. Month End Accrual

Costing details to be added to the Web Service extracts

New contract costing details will be added as new attributes on both the Purchase and Sales Contract xml extract formats
New contract costing details that have been sent to the Accounts Payable System will be added as new attributes on both the Inbound and Outbound Ticket xml extract formats
Costing amounts that are sent to Accounts Payable will be available in the Accounts Payable Voucher extract, along with the Ledger Journal Entries
Costing amounts that are included in Origin Price and included in Contract Price will be added to the Purchase and Sales Settlement extract formats, along with the Ledger Journal Entries
Note: Costing amounts that are NOT included in the Contract Price are already part of the Purchase and Sales Settlement extract xml formats.

AGRIS Customer Documentation

Contract Costings Training Document