Inventory FX/UOM Management

Overview

Molecule's inventory management capabilities provides comprehensive support for multi-currency trading and flexible units of measure (UOM). This system enables accurate valuation and reporting across different currencies while maintaining proper foreign exchange (FX) rate tracking.

When you create or update a ticketl if the ticket has a product assigned and uses the product's currency If no product is assigned but the ticket is linked to a trade, it uses the trade's product currency Otherwise, it defaults to your account's base currency

Features

1. Multi-Currency Inventory Management

Currency Support on Tickets

• Automatic Currency Assignment: Tickets now automatically capture currency information from their associated products or trades

• FX Rate Tracking: Each ticket maintains its own FX rate for accurate currency conversion

• Base Currency Conversion: All foreign currency values are automatically converted to your account's base currency for unified reporting

2. Units of Measure (UOM) Management

Flexible UOM Tracking

• Product-Level UOM: Each product can have its own unit of measure (barrels, gallons, MWh, MT, etc.)

• Automatic UOM Assignment: Tickets inherit UOM from their associated products

• Commodity Default UOM: If no product UOM is specified, the system uses the commodity's contract UOM

UOM Priority Order

1. Ticket's product UOM (if a product is assigned to the ticket)

2. Trade's product UOM (if the ticket is linked to a trade)

3. Commodity's contract UOM (default fallback)

3. Exchange Rate Management

User-Defined Exchange Rates

You can upload and manage your own exchange rates, giving you full control over FX assumptions used in valuations.

To manage exchange rates:

1. Navigate to the Exchange Rates API endpoint

2. Upload rates with the following information:

   • As-of date (YYYY-MM-DD format)

   • Asset currency (e.g., EUR, GBP)

   • Denominated currency (e.g., USD)

   • Exchange rate value

Priority: User-defined rates take precedence over system-provided rates

Automated FX Rate Updates

• Morningstar Integration: Automatic daily updates for EUR/USD and EUR/GBP rates

• Real-time Revaluation: When new FX rates are received, all affected trades, tickets, and inventory entries are automatically revalued

• Historical Rate Tracking: The system maintains both current and prior FX rates for accurate change tracking

4. Inventory Valuation Configuration

Currency and UOM-Specific Configurations

You can now create separate valuation configurations for the same commodity in different currencies or units of measure.

To configure inventory valuations:

1. Go to Settings > Inventory Settings

2. Click "Add Configuration"

3. Specify:

   • Commodity

   • Asset (optional)

   • Currency (optional)

   • UOM (optional)

   • Marking formula

Example Use Case: You can have different marking formulas for Crude Oil tracked in barrels versus gallons, or for inventory in USD versus EUR.

5. Reporting

Valuation Report Fields

The inventory valuation reports now include comprehensive FX and UOM information:

Currency Fields

• Currency: Transaction currency

• FX Rate Used: Exchange rate applied for current valuation

• Prior FX Rate: Previous period's exchange rate

• FX Change Factor: Impact of FX rate changes on valuation

Base Currency Fields

• Base Realized Avg Price: Average price converted to base currency

• Base Prior Realized Avg Price: Previous period's average price in base currency

• Base Notional: Total value in base currency

• Base Prior Notional: Previous period's total value in base currency

• Base Unrealized: Unrealized P&L in base currency

• Base Prior Unrealized: Previous period's unrealized P&L in base currency

• FX MTM Change: Mark-to-market change due to FX movements

Data Quality Fields

• Curve Source: Source of the pricing curve used

• Prior Curve Source: Previous period's curve source

• Valuation Completed: Boolean flag indicating if valuation was successful

• UOM: Unit of measure for the inventory item

6. API Access

Exchange Rates API

Manage exchange rates programmatically:

GET /api/v2/exchange_rates

• Retrieve exchange rates for a specific date

• Requires as_of parameter

POST /api/v2/exchange_rates

• Create single or multiple exchange rates

• Automatically updates existing rates if conflict exists

PUT /api/v2/exchange_rates/:id

• Update existing exchange rate

DELETE /api/v2/exchange_rates/:id

• Remove user-defined exchange rate

Inventory Valuations API

All new FX and UOM fields are available through the standard valuations API endpoints and included in:

• API responses

• Bigbang data exports

• Valuation archives

Account Settings

Your account administrator can configure how inventory is aggregated, by UOM or currecny.