JD Edwards Procure & Hedge
Hedge your purchasing contracts. Automate settlements. Run mark-to-market.
About JD Edwards Procure & Hedge
Execute trading processes in your JD Edwards ERP environment with the JD Edwards Procure & Hedge module. Enter all your quotation contracts straight into JD Edwards and save time creating the right purchase order, while maintaining a real time insight in your exposure and position. JD Edwards Procure & Hedge supports Physical, Futures, Options and Foreign exchange contracts, which allows you to easily hedge your positions to make sure your exposure is covered.
JD Edwards Procure & Hedge also provides automatic settlement of Futures and Options and the generation of purchase orders. This allows you to save a significant amount of time in the process. With the Procure & Hedge module you can valuate your position to the current market with the press of a button! Also, the module supports multiple Greeks calculations, such as delta, theta and others.
- Realtime insight in position
- Futures and Options settlement
- Create purchase orders from Physical and Quotation contracts
- Borrowing base reporting
- All your transactions, hedging and automated settlements in one software environment.
- Direct insight in your position and exposure so you can make decisions based on all the available information.
- Built with the commodity trader in mind: use your already existing process flow to perform the needed actions.
- Fully integrated with JD Edwards: work seamlessly together with the standard JD Edwards purchase order processing.
- Works with standard JD Edwards concepts like Watchlists and with a data model for OBIEE and Tableau ready made for reporting purposes.
- Quick and non-intrusive implementation: implemented with minimum impact on existing JD Edwards configuration.
More about JD Edwards Procure & Hedge
Realtime insight in position
The starting point for you as a trader is your position. With JD Edwards Procure & Hedge you have insight in your Physical contracts, quotation contracts and inventory in quantities as well as values. This is where all the information comes together to make the right decisions.
With the insight that you gain from the position overview in JD Edwards Procure & Hedge, you can easily spot the amount of market exposure that a particular commodity has. When your analysis signals that you need to hedge this market exposure, you can record a Futures Contract in JD Edwards Procure & Hedge to mitigate this risk. This Futures Contract will also show up in the position so you can see that you have properly hedged your position. This makes sure that your Price & Currency risk is always covered.
Futures and Options settlement
JD Edwards Procure & Hedge can automatically settle with the settlement price on the Last Trading Day or Option Expiry date of your contract. The software creates a settlement trade of the result and subsequently books this result to the General Ledger. This process is fully integrated with the JD Edwards finance module. This reduces human errors and increases the reliability and efficiency of your processes.
Create purchase orders
With the Procure & Hedge module you can setup a fixed price contract or a quotation contract. A quotation contract will be priced at a later stage based on the pricing rule that applies. For both contracts you can generate a purchase order to call off the commodity. The items characteristics are used to determine the stock keeping unit that needs to be reflected on the purchase order. After you have created the purchase order, it follows the purchase order process that you have in place. and ready to be received.
Borrowing base reporting
With all the information that is captured within JD Edwards Procure & Hedge it is easy to create an overview of your borrowing base. All your positions are updated daily to reflect their current market value. This includes Physical contracts, Futures Contracts, Options Contracts and FX Contracts. This overview increases the transparency of your operations to potential lenders and therefore strengthens your borrowing base.
Based on market prices provided (possible through in an interface) and the contracts that are currently in JD Edwards Procure & Hedge, the module recalculates the Mark-to-Market. The Mark-to-Market is calculated for all Physical, Futures, Options & Forex contracts. This gives you a complete overview of the value of your position in a particular month.
JD Edwards Procure & Hedge is designed for commodity traders that already use JD Edwards. Because JD Edwards is already configured it can easily be upgraded with the Procure & Hedge module. For JD Edwards Procure & Hedge to be fully functional, the link between the stock keeping units and commodities needs to be made. Using this connection your position can be determined daily. To take full advantage of the potential of JD Edwards Procure & Hedge, the connection between the stock keeping unit & commodities that are traded on the exchange need to be made. This will ensure that your position is up to date.