Relevant to: Buyers
Navigation Tree: Transactions > Contracts
To wash out a contract is to cancel the transactional arrangement due to various factors determined outside of AgriDigital. Once a washout has been agreed upon by the two parties, a user can complete the washout by executing one of the following:
A) Cancel the contract (recommended). Follow these steps:
- Navigate to the Contracts feature within the Transactions module and select the relevant contract. Next, select "Edit Contract" from the Options dropdown.
- Edit the Comments field with the explanation of the washout and save.
- Complete the process by selecting "Cancel Contract" from the Options dropdown. The contract will be marked as canceled but will not be deleted.
- Note that any financial settlements of this washout will need to be handled outside of AgriDigital.
Note: There are a number of reasons why a user will not be given the option of cancelling a contract. For more information see this article.
B) Create an identical offsetting contract. Follow these steps:
- Navigate to the Contracts feature within the Transactions module and select the relevant contract. Select Edit from the Options dropdown and update the contract's quantity to .01 (the system will not accept 0).
- Create an new offsetting contract (i.e. Purchase Weight vs Sale Weight) with identical inputs. We recommend leaving a comment on each contract for auditing purposes.
- To consummate the washout, complete both contracts.
Helpful Tip: A contract must have an "In Progress" status to be canceled. If the contract has a different status the user has two options:
- Cancel existing orders and reverse all deliveries to update the contract's status to "In Progress".
- Manually update the contract's status to Complete. However, this is not a true washout.