"Allegro's component architecture and advanced functionality allows LCRA to utilize only those modules needed to address today's requirements in the areas of energy risk management, trading and distribution, and is highly scalable to support our future growth objectives."

Lower Colorado River Authority (LCRA)

Net Valuation Management & Reporting Solution PDF Print E-mail

RevenueEasily calculate, report and manage inventory valuation and accruals with the Allegro Net Valuation 8.0 Component

Understanding and monitoring inventory is essential for optimizing a company’s supply chain, improving workflow and increasing company profitability. Companies need to accurately calculate, report and track inventory to optimize supply and market at the unit cost level to ensure effective planning decisions.

Many companies need integrated valuation tools to accurately calculate and produce net back prices for appropriate revenue distribution to interest owners as well as meet financial reporting requirements. Other companies need to capture all costs associated with commodity storage and physical movements to manage inventory valuation and accruals. Coupled with the fact that companies, now more than ever, need to integrate risk management strategies in their business to protect against inherent price volatility, Allegro’s inventory valuation tools are an increasingly valuable asset.

Net Valuation 8.0

Allegro’s Net Valuation 8.0 component supports companies with the ability to easily calculate the net valuation of inventory and complete net forward, net back and profit margin calculations across multiple commodities including crude oil, natural gas and NGLs. This powerful yet flexible solution provides a streamlined approach to capture valuations which may include commodity value, transactional costs and transportations costs. With the Net Valuation component, companies can accurately calculate, report and manage inventory valuation and accruals within the Allegro 8 ETRM solution.

Key Feature Key Benefit

Inventory Valuation and Accruals
  • Flexible solution to easily manage complex valuations and inventory accruals
  • Effortlessly supports inventory valuation methods such as LIFO, FIFO, WACOG and Storage for accurate and streamlined accruals

Net Forward Valuation and Sales Margin
  • Automated generation of net forward calculations including sales margins to analyze profitability
  • User-defined Net Class to easily group costs/fees to ensure streamlined Net Forward Calculations

Net Back Valuation and Supply Margin
  • Automated generation of net back calculations including supply margins to analyze profitability
  • User-defined Net Class to easily group costs/fees to ensure streamlined Net Back Calculations

Automated Journal Entry

Automatically generate journal entries for production revenue and opening inventory revaluations

Full Audit Capability

Built in audit capability to provide accuracy and compliance of valuations

Reporting

Provides flexible reporting of weighted average sales price(WASP) and weighted average cost of goods (WACOG) net back and net forward providing users with the ability to easily query, sort and select key data for reporting