Workflows

Workflow: Setting Up Index-Based Pricing

Step-by-step guide to configuring index-based pricing in Jules — from creating indices through building formulas, applying them to contracts and operations, and fixing final prices.

Workflow: Setting Up Index-Based Pricing

Step-by-step guide — How to configure market-index-linked pricing in Jules, from raw indices to price formulas on contracts and operations.

When to use this workflow

Use this workflow when you are setting up pricing that references a market index (such as TSI, LME, Platts, or RISI) rather than a fixed spot price. Index pricing is the standard for most international recyclable commodity trades.

How Index Pricing Works in Jules

Step-by-Step

Step 1 — Verify or Create the Price Index

A price index is the raw market reference value. Jules stores indices by name and period.

Navigate to Configuration → Price Indices
Check if the index you need already exists (e.g., "TSI HMS 1&2 CFR Turkey")
If it does not exist, create it:

Field	Description	Example
Name (value)	The index identifier	TSI HMS 1&2 CFR Turkey
Period	Time period for this value	2026-01 (January 2026)
Index value	The numeric value	330.00

Important: Index values are unique per (name, period) pair. Jules will not create duplicates — if you enter the same index for the same period twice, the second entry is ignored.

Step 2 — Understand the Formula Types

Jules supports several formula patterns for combining indices with adjustments:

Formula code	Logic	Example
INDEX_MINUS_DIFFERENTIAL	Index − fixed discount	TSI − USD 15/T
INDEX_PLUS_DIFFERENTIAL	Index + fixed premium	TSI + USD 5/T
INDEX_TIMES_RECOVERY	Index × recovery percentage	LME × 85%
INDEX_TIMES_RECOVERY_MINUS_DIFFERENTIAL	(Index × recovery%) − fixed	(LME × 85%) − USD 10
TWO_INDEX_BLEND	Weighted average of two indices	60% TSI + 40% LME
CUSTOM	Free-form formula	Complex multi-variable formulas

Step 3 — Configure Index Pricing on a Contract Quality

When creating or editing a contract, configure the quality stream's pricing:

Open the contract and navigate to a quality stream
Set Price type to INDEX
Configure the formula:

Field	Description	Example
Index	Primary market reference	TSI HMS 1&2 CFR Turkey
Formula	How to apply the index	INDEX_MINUS_DIFFERENTIAL
Differential	Premium or discount	−15 USD/T
Recovery rate	Percentage of index applied	100% (or 85% for LME-based)
Quotational Period (QP)	When to measure the index	M-1 (average of previous month)
Price mode	OFFICIAL, BID, ASK, etc.	OFFICIAL

Step 4 — Configure Advanced Index Options (if needed)

For more complex pricing, Jules supports additional parameters:

Quotational Period Configuration

QP option	Meaning
M-1	Average of the month before shipment
M	Average of the shipment month
M+1	Average of the month after shipment
Custom range	Specific date range for averaging

Two-Index Pricing

Jules can combine two indices on a single quality line:

Field	Index 1	Index 2
Index	TSI HMS 1&2 CFR Turkey	LME Steel Scrap
Weight	60%	40%
Recovery rate	100%	85%
QP	M-1	M-1

Contango

For futures-based pricing, add a contango value — the forward premium for deferred delivery:

Field	Description
Contango value	Premium per tonne for forward delivery
Contango period	How many months forward

Step 5 — Apply to Operations

When an operation is created from the contract, the index pricing configuration is prefilled automatically. Verify:

Operation quality shows priceType = INDEX
The formula, differential, and QP are correctly transferred
The price displays as temporary if the index for the QP hasn't been published yet

Step 6 — Understand Temporary vs Definitive Pricing

State	Description	Margin impact
Temporary	Index value not yet published; price is an estimate	Margin is estimated only
Definitive	Index published; price is calculated and final	Margin can be finalized

The isTemporaryPrice flag on the operation quality tracks this state.

Step 7 — Fix the Price at Month-End

When the quotational period ends and the index provider publishes the final value:

Enter the final index value in Price Indices (if not already present)
Navigate to operations with temporary prices for this QP
Update the operation quality to use the definitive price
Remove the isTemporaryPrice flag
Regenerate invoices if needed with the final price

Example: Complete Index Pricing Setup

Deal: Buy 500 T HMS 1&2 from Garfield Metals at TSI HMS 1&2 CFR Turkey, average M-1, minus USD 15/T

Step	Action	Result
Index exists	TSI HMS 1&2 CFR Turkey is already in the system	Ready
Contract quality	HMS 1&2 @ INDEX, formula = INDEX_MINUS_DIFFERENTIAL, diff = −15, QP = M-1	Terms configured
Operation created Jan 15	Prefilled from contract, shipping planned for February	Price = temporary (Jan average not yet published)
Jan 31 — index published	TSI Jan average = 330 USD/T	Enter in Price Indices
Price fixed	330 − 15 = 315 USD/T	Definitive price, margin recalculates

Common Mistakes

Mistake	Consequence	Fix
Index value not entered for the QP	Prices remain temporary; margins are estimates	Enter the index value as soon as published
Wrong QP configured (M instead of M-1)	Price fixed against wrong period	Correct the QP on the contract/operation quality
Differential sign error (−15 instead of +15)	Price is 30 USD/T off	Double-check formula direction
Missing recovery rate for LME-based pricing	Full index value used instead of partial	Set the recovery rate (e.g., 85% for steel scrap)

Pricing Engine, Market Indices & Offers — full pricing reference
Contracts & Pricing — contract quality configuration
Operations & Lifecycle — operation quality pricing
Workflow: Month-End Margin Close — price fixation in the close process

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