The Position rolling screen, reachable from the Position screen, will now also support rolling the valuation periods of inventory assets, both stock and floating. Previously you could already use this screen to roll the valuation period of un-executed contract quantities. Now it supports combined rolling of contracts and inventory. You can see how it works by opening the Position rolling screen.
You will not only see all your un-executed contract quantities presented there, but also every asset of type stock or floating; these are the same assets as are shown in screens like Mark to Market, Position details, and Result per Contract. You can select which contracts, stock and floating quantities you want to roll and they will then be rolled as 1 set. The net quantity balance of the selected items will be used to calculate the number of lots to trade for the spread, and create a hedge requirement for it.
There are some implications for valuation:
Stock Valuation
Since users can now control how inventory is valued, this implies that Agiblocks will no longer enforce inventory to be valued against the first upcoming futures month; now you are in control over the valuation of your inventory, and you need to roll it yourself when the futures expire. The reporting period of stock assets will automatically be moved 1 period ahead when that period is closed.
Early Harmonization
Since you can now control in detail how assets are valued, Agiblocks will no longer enforce so called early harmonization. Early harmonization used to enforce that any quantity from inventory or from a purchase which has been reserved to a sales contract, would be forced the same valuation parameters (position, valuation period and reporting period) as that sale.
In previous releases Agiboo introduced already a switch to turn this behavior off. Now this early harmonization functionality has been removed from the system completely, since it conflicts with giving you the control to roll the period.
So, the switch to turn early harmonization off no longer has any effect. When currently you have it switched on, then upgrading to 3.23 implies switching it off and you need to go through the same procedure as when switching it off.
If you have questions about the impact of this change, please contact Agiboo Support. (Please note that some companies already have Early Harmonization turned off.)
Late Harmonization vs Realization
In the final release of 3.23 Agiblocks will delay late harmonization until the transaction is realized.
Late harmonization has the same behavior as early harmonization, but it does it later, not already upon reservation. Until now it used to harmonize the valuation upon delivery of the goods to the sale. This will be removed as well. Instead, upon realization (when the goods are not only delivered but also priced), Agiblocks will freeze the valuation completely and valuate both against the valuation parameters of the sale, and against market data at the date of realization.
This change is also required to make it possible for users to use the Position rolling screen to control the valuation of their assets, as long as they are not realized.
In Progress Rolling Indicator
After selecting the Roll positions button, position rolling begins for the selected rows. An indicator appears next to the Roll positions button when a rolling is in progress. The Roll positions button may not be selected again until the rolling is completed.
Note: Rolling many rows at once may take some time to complete.