What is washout contract in SAP LO-GT - Global Trade Management?

SAP Term: washout contract

• Component: LO-GT

• Component Name: Global Trade Management

• Description:

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• Key Concepts: 
  A washout contract is a type of contract used in Global Trade Management (GTM) within SAP. It is used to manage the risk of currency fluctuations between two parties. The contract allows for the exchange of goods and services between two parties, with the value of the goods and services being determined by the exchange rate at the time of the transaction. 
  
  How to use it: 
  In order to use a washout contract, both parties must agree to the terms of the contract. This includes agreeing on the exchange rate, as well as any other terms that may be included in the contract. Once both parties have agreed to the terms, they can then enter into a transaction using the washout contract. 
  
  Tips & Tricks: 
  When entering into a washout contract, it is important to ensure that both parties are aware of all of the terms and conditions of the contract. This includes understanding how the exchange rate will be determined and any other terms that may be included in the contract. Additionally, it is important to ensure that both parties are aware of any potential risks associated with entering into a washout contract. 
  
  Related Information: 
  For more information on washout contracts, please refer to SAP's Global Trade Management documentation. Additionally, there are many online resources available that provide more detailed information on how to use washout contracts in SAP.