Discount Premium Quality Schedule
A discount premium quality schedule (DPQS) specifies the quality characteristics to be measured for a commodity, the acceptable values for those characteristics, and any discounts or premiums to be applied. The DPQS also specifies volume adjustments to be applied based on quality characteristics such as moisture content and foreign material content.
The system uses the DPQS to evaluate the quality of a load, determine whether a load is of an acceptable quality, and calculate the relevant discounts or premiums. The results of the evaluation are used in the contract application process (to match loads to pricing trading contracts) and in the contract settlement process (to apply relevant discounts or premiums).
Structure
A DPQS consists of a volume schedule and a value schedule. First, you define a volume schedule. Then, you define a value schedule and assign the relevant volume schedule to it.
Volume Schedules
Volume schedules are used to determine whether a quantity should be adjusted based on the value of a characteristic. For example, if the quality characteristic, moisture, is between 0 and 10%, the load quantity may need to be reduced by 1% for each 1% of moisture to determine the actual quantity to apply against the contract. A volume schedule contains the following information:
Header Information
The header includes information such as the
Schedule Name
, theMaterial
, theRegulatory Agency
, and the validity date range.DPQS Characteristic Information
The characteristic information includes the relevant characteristics for the material (for example, moisture content), along with details such as the number of decimal places, the measurement unit, and whether the characteristic affects contract application and/or contract settlement.
DPQS Characteristic Range List
The characteristic range list specifies the valid value ranges for each characteristic and the increase or decrease in quantity to be applied for each one, as illustrated in the following example:
ExampleCharacteristic
Minimum Value
Maximum Value
Adjustment
Per Increment
Moisture
0%
3%
-1%
1%
Moisture
4%
7%
-2%
1%
Foreign Material
0%
2%
-1%
1%
Foreign Material
3%
4%
-2%
1%
End of the example.
Value Schedules
Value schedules are used to determine the acceptable value ranges for the quality characteristics for a commodity, along with any relevant premiums and discounts. A volume schedule contains the following information:
Header Information
The header includes information such as the
Schedule Name
, theMaterial
, theRegulatory Agency
, the validity date range, and the name of the related volume schedule.DPQS Characteristic Information
The characteristic information includes the relevant characteristics for the material (for example, moisture content), along with details such as the number of decimal places, the measurement unit, and whether the characteristic affects contract application and/or contract settlement.
DPQS Characteristic Range List
The characteristic range list specifies the valid value ranges for each characteristic and the discount or premium to be applied for each one, as illustrated in the following example:
ExampleCharacteristic
Minimum Value
Maximum Value
Charge Type
Action
Moisture
0%
2%
Premium
Accept
Moisture
3%
6%
Discount
Accept
Moisture
7%
100%
Reject
End of the example.Material Schedule
A material schedule is a list of the materials that are acceptable for evaluation during contract application. The system uses the material schedule to limit the number of possible matching contracts, prior to comparing the actual load values with those required by the DPQS data in the contract. When a value schedule is saved, the system generates the material schedule based on the material classifications defined for the entered material. For example, a class of materials, CORN, may be defined with a broad range of values for characteristics such as moisture, foreign material content, and broken kernels. Materials such as Yellow Corn 1, Yellow Corn 2, and Yellow Corn 3 may be defined as members of this class with smaller, possibly overlapping ranges for the characteristics. Depending on the ranges defined in the value schedule, one or more of these materials may be included on the corresponding material schedule.
Integration
You define DPQS volume schedules and values schedules as master data. Then, you assign a DPQS value schedule to a commodity contract. Note that a value schedule already has an associated volume schedule, so you don't need to assign a volume schedule to the contract. The DPQS data for the contract is used during the contract application and contract settlement processes.