What is PHYSRATES

Several Premium/Discounts (P/D) are calculated at invoice time in PINVGL and SINVGL, especially related to the domestic grain & oilseeds business. In general the adjustments are driven by TRADE data such as contract terms and terminal combined with rates tables maintained in PHYSRATES. PHYSCODES/Contract Terms has columns indicating which of the below P/Ds apply.

The following options are available in PHYSRATES:

EPR

EPR stands for End Point Royalties. When grain is received at the terminal, its variety is recorded as part of the intake process. Some varieties include an EPR payable to the EPR Manager, if so the value of that EPR is subtracted from the amount payable to the grower and posted to a holding account instead. The operating company may also charge a collection fee which is subtracted from the royalty. The EPR parameters are maintained in PHYSCODES/General Parameters. The Royalties are paid to the EPR manager in PROREP/Royalties Collected Report.

EPR New year

The EPR rates change each year but are based on existing combinations. This option allows speedy entry of the new rates while retaining the old ones.

Freight Differential

The freight differential is a premium/discount paid or received representing the distance between the contract’s port of origin for purchases and port of destination for sales and the terminal location.

Freight Differential New year

The freight differential rates change each year but are based on existing combinations. This option allows speedy entry of the new rates while retaining the old ones.

Levies

Various levies (AFFA, BAMMA, SAGIT etc) may be applied depending on the commodity code, state etc. Some contain complex calculations given by the Rate Type in PHYSRATES.

Multi Grade

When grain is received into a terminal (PROMAN) sometimes a different grade is received instead of the contracted. The valid combinations together with a premium/discount are maintained here. PROMAN swaps the commodity code and creates a cost for the P/D

Receivals

Receival is charged for deliveries into a terminal

Shrinkage

Shrink represents a standardized %age given up to the terminal owner on delivery. It applies to some contract terms on delivery and some in invoicing.

Storage Fees

Storage fees are the rates and formulas for calculating storage and delivery costs and accruals. This table is comprehensive for handling different storage and delivery-in/out charges using STORINV (Storage Invoicing) and GPLREP (accrual reporting for storage/delivery charges)

Yields

The yields table represents the expected yields for the transformation of raw materials. Typically from crude palm oil (CPO) to Refined Bleached Deodorised Palm Oil (RPD) and palm fatty acid (PFA) in Indonesia.

The yields may be different if processed at different terminals and at different dates.

It is used in the GPLREP Position report when doing the IFRS Asset position (where bonded commodities are reported as transformed according to their yields) and when doing the Trading Asset Position (where traders may speculate on the processing scenario).