Contract Management
C3 automates contract management with a simple interface for entering and maintaining contracts. Major contract types managed are:
- Purchases
- Sales
- Exchanges
- Inventory
- Physical
- Swaps
- Options
- Futures
Pricing
C3 manages third party pricing publications and internal price postings and price curves. C3 supports automated interfaces with OPIS and Platts.
Pricing is utilized in a flexible market index engine which automatically calculates formulas such as:
- Month average
- Day of lifting and prior day
- Wraps
- Weekday based pricing
- Lower of 2 indexes
- Multiple indexes with differentials
Scheduling
C3 supports scheduling and optimization of product receipts and deliveries through a multitude of transportation modes. Major modes of scheduling are as follows:
- Truck scheduling
- Railcar scheduling
- Pipeline scheduling
- NGL matching and distribution
- Marine scheduling
Inventory
C3 manages an automated weighted average inventory model. Weighted average costing is generated live giving the most accurate and recent WACOG calculations possible.
WACOG calculations become integral for gross margin reporting, risk reporting and general ledger interfaces.
Gross Margin Reporting
With contract management outlined, pricing and market indexes automatically calculating and WACOG real time calculations, we are well positioned to provide real time gross margin reporting
Wholesalers and retailers have real time gross margin reporting at their fingertips at anytime throughout the month.
Simple month to date calculations based on sales, purchases and inventory valuation provides summary and detail level reporting.
Risk Reporting
Priced positions and unpriced positions are easily calculated on all physical contracts and swaps. Options automatically calculate in the money and out of the money settlements based on known pricing data.
OPIS, Platts, Nymex and custom generated pricing curves are utilized in risk reporting and mark to market calculations. Depending on the product and the contract type, these pricing structures are leveraged for real time mark to market calculations and risk reporting.
Invoicing
With contracts managed and pricing automatically calculated, scheduling is quickly followed with an automated invoicing process.
Invoices are created as PDF files with custom logo layouts. PDF files may be emailed, faxed, or snail mailed to customers with a simple setup on the business associate master outlining the invoice delivery preference.
Accruals
Contract management and pricing calculations enable C3 to generate real time accruals on purchase contracts as soon as product delivery data in processed in C3.
Accruals provide the basis for vendor payable matching outlined below as well as month end cost accrual accounting during the closing process.
Vendor Payables
As vendor invoices are received, these documents are matched against open accruals calculated above. Vendor payable matching ensures we are generating AP against verified costs and catching any pricing errors either with the vendor’s invoice or with C3.
Staff processing vendor payables have tolerance levels for over or under paying a transaction. These controls ensure accurate processing of all payments.
General Ledger Interface
C3 interfaces with many general ledger systems seamlessly. Customer invoices are fed over as AR for payment processing and AR aging. Vendor invoices are fed over as AP items to be processed for payment. Cost of goods sold calculations and open accruals are generated and fed into the general ledger as part of month end closing.
