| Description |
Grain Discounts as a Percent of Price
Description:
i21 needs the ability to allow grain discounts as a percent of price. Typically, this is used for Moisture Discounts. It is a variable discount that is a fixed percent of the contract or spot price, multiplied by the number of units. It can either be taken on the “Gross Units” or “Wet Units”.
Example Discount Schedule:
Example A:
• 1000 bu at $10.00 – 11% FM (10% of gross weight discount) - 16% moisture (12% of contract price discount) – 52# TW ( .01/bu discount) and 3% Damage ( .03/bu discount)
• FM Shrink on gross weight
• Moisture Price Discount on Wet Weight (Bushels after FM Shrink)
• All other cents/bu discounts after.
1000bu
-100bu (1000 X 10% FM shrink)
= 900 bu
X $10 (Contract Price)
=$9000
-$1080 ($10 x 900bu x 12% discount)
=$7920
-$ 9(.01 TW Discount x 900bu)
-$ 27(.03 Damage Discount x 900u)
=$7884
Example B:
• 1000 bu at $10.00 – 11% FM (10% of gross weight discount) - 16% moisture (12% of contract price discount) – 52# TW ( .01/bu discount) and 3% Damage ( .03/bu discount)
• FM Shrink on gross weight
• Moisture Price Discount on GROSS Weight
• All other cents/bu discounts after.
1000bu
-100bu (1000 X 10% FM shrink)
= 900 bu
X $10 (Contract Price)
=$9000
-$1200 ($10 x 1000bu x 12% discount)
=$7800
-$ 9(.01 TW Discount x 900bu)
-$ 27(.03 Damage Discount x 900u)
=$7764
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