Sales Contracts in Grain

Overview

A Sales Contract is a binding contract between an elevator and a processor/terminal for a specified delivery period and number of units. It is a commitment to determine delivery of a specific Commodity at a certain time and price.

An unlimited number of bushels can be on a Sales Contract.

There are five different types of Sales Contracts:

• Priced
• Priced Later
• Basis Fixed
• Futures Fixed/HTA
• Minimum Priced

Process

1. Go to Grain / Operations / Sales Contracts and select Add.
   
2. Enter a Contract number if not auto-numbered.
3. Enter the Buyer's Reference. This can be used to match the processor Contract number.
4. Double-click in the <Customer ID> field to select the Customer for the Sales Contract.
5. Set the Shipping Destination.
6. Indicate the Location and Commodity.
7. The Date Established defaults as today's date but can be changed if needed.
8. Set pricing options whether FOB, Delivered, Futures, and/or Basis.
   • FOB – In-transit/valuations
   • Delivered – Contract price
9. Select the Futures Month and Exchange.
10. Enter the Contract Quantity.
11. Indicate the Start Delivery and Complete Delivery dates for when the Contract will be available for selection.
12. The Link to Purchase tab defaults the Location, Commodity, Customer, and Sales Contract Quantity from the General tab. If applicable, double-click the Purchase Contract column heading to open the Select Purchase Contract window.
13. Highlight a contract and choose Select or, if necessary, choose Add a Contract or Add a Spot.
14. On the Comments tab, enter any applicable notes and choose Accept. Double-click in the Comment field to choose from previously saved Comments.
15. The Migration History tab provides information including Destination Contract, Location ID, Units, FOB Price, Delivered Price, User ID, and Transaction Date/Time Stamp.
16. Select Save when finished.