5.19.8 Reverse a contract

To cancel out an authorized contract, you should use the Contract Reversal function. In the Contract Detailed View screen, select Reverse from the Processing sub - icon. You will be prompted to confirm the reversal. Once you confirm it, all the accounting entries that have been passed for the contract will be reversed (this is done by passing the entries with a negative sign). These entries could be the contract initiation entries or any liquidation entries. A contract that is past its Value Date and has been settled can also be reversed. You can choose to suppress or change the priority of the reversal advices.

Reversal advices to the counterparty will be sent if they are on TELEX or Mail.

Note:

Settlement Messages for the reversed payments will not be generated automatically by the Contract Reversal function. You have to generate them manually.

After the reversal has been done, you will be returned to the Contract Detailed View screen.