Overview:
It is important to keep your crop price estimates current. We use these, along with the Estimated Yield specified within each Harvest Task, to derive the Planned Crop Revenue in Profit Analyzer.
Requirements:
- Estimated crop prices in place.
Answer:
Traction Enterprise uses the Estimated Net Price and the Estimated Yield specified on each Harvest Task to determine the Planned Revenue of a particular crop type on the Profit Analyzer.
Estimated Net Prices are also used to determine the expected value of Contracts that have not fully been priced (Actual Net Price has not yet been determined). This impacts the Contracted Revenue of a particular crop type on the Profit Analyzer. After your Contract has been fully priced, Traction Enterprise uses the actual prices to determine the contracted value and calculates your average crop price.
Example
If you have just created a Hedge to Arrive Contract and have not priced it yet (that is, not yet agreed on a Basis price), Traction Enterprise uses the Estimated Basis set in Setup>Crops to calculate an Expected Value for the Contract.
If you created a Basis Contract and have not priced it yet (that is, not yet agreed on a Futures price), Traction Enterprise uses the Price Estimated entered in Setup>Crops to calculate an Expected Value for the Contract. This will appear as a Net Price in a faded gray color, as seen below. When you agree on a Futures price with your customer, enter it into the Contract and Traction Enterprise will use your actual Futures Price to determine the value of your Contract.
Related Articles:
How do I change crop prices?
How is revenue calculated for a crop?