What is washout in SAP LO-AGR-STL - Agency Business Document, Settlement, Revenue Recognition?

SAP Term: washout

• Component: LO-AGR-STL

• Component Name: Agency Business Document, Settlement, Revenue Recognition

• Description: A transaction in which the firm is engaged in a purchase and a sale contract with the same counterparty for the same commodity and can settle a portion of the contracted quantity financially, without moving goods. Variations include circles and strings.

Smart SAP Assistant

• Key Concepts: 
  Washout is a process in SAP Agency Business Document, Settlement, Revenue Recognition (LO-AGR-STL) that allows for the cancellation of a settlement document. This process is used when a settlement document needs to be reversed or when the settlement document was created in error. 
  
  How to use it: 
  To use the washout process, the user must first select the settlement document that needs to be reversed. The user then selects the “Washout” option from the menu and confirms the selection. The system will then reverse the settlement document and all associated documents. 
  
  Tips & Tricks: 
  When using the washout process, it is important to ensure that all associated documents are also reversed. This can be done by checking the “Reversal” checkbox in the menu before confirming the selection. 
  
  Related Information: 
  For more information on using the washout process in SAP Agency Business Document, Settlement, Revenue Recognition (LO-AGR-STL), please refer to SAP Help documentation.