TABLE OF CONTENTS

1. Solution

1.1 Summary Description

• With this enhancement, Cancel Contracts creates an offsetting contract when producing delivery sheets.  This allows the new contract to be included on the settlement produced, so as to settle the difference between the two.  

• The Purchase and the Sale contracts retain the current price and the delivery sheets created during Cancel Contracts offset and settle for the difference.

• This saves time having to create the opposite contract before hand.  In Cancel Contracts, it saves time having to select one at a time each Purchase and Sales contract and entering through the screens.  

• It also provides reporting history for both contracts and each full price.

1.2 Solution Overview

• The system prompts the user to create a new contract at the end of cancelling each contract, when the user chooses to produce a delivery sheet.

• There is a new button on the produce a delivery sheet prompt, "Create With Offset".  If this button is selected the offset contract will be created. 

• This new contract will be the opposite Purchase/Sales from the first cancelled schedule.  Only one new contract number is created for each cancel contract session.  All offset schedules are on that one contract (each schedule can have a different contract pricing type – to match the cancelled schedule by default). 

• The user enters through all of the price schedule screens, similar to adding a contract in Contract Maintenance.  The schedule details default from the cancelled schedule. 

• The new contract schedule is created, cancelled, and put on a cancel delivery sheet.  Hedge audit entries are made for "Add New Contracts" and "Cancel Contract".  The new sheet is included on any settlement created from Cancel Contracts. 

• The cancelled contract number is stored in a pricing remark on the offset schedule. 
  
  
  

2. Design Specification

2.1 Cancel Contracts

Navigation: GRN > Contracts > Cancel Contracts
A button to the "Produce Delivery Sheet" question (Cancel With Offset) appears for the user to create an offsetting contract and delivery sheet.  The offsetting contract is a new contract schedule for the quantity just cancelled.  The user has the ability to edit price and anything else on the schedule.

For the screenshot below:

• A Purchase contract was cancelled for 600 bushels.

• Using the new button, a Sales contract will be created for 600 bushels, cancelled, and put on a delivery sheet.

• The Sales sheet will be settled with the Purchase sheet, if a settlement is created.

The user may edit each offset schedule by stepping through the price schedule screens similar to Add New Contracts.  These screens are below.  The new schedule defaults from the cancelled schedule. The cancelled contract number is put into a pricing remark.  When finished, the schedule is added to the offset contract (with Hedge Audit entry), automatically cancelled (with Hedge Audit entry), a cancel contract delivery sheet is created, and the delivery sheet is added to the settlement process (in case user chooses to produce the settlement).

The user us not be able to modify the quantity UOM and the price currency.

Note:  The user has the ability to cancel during the offset contract creation.  However this is the ONLY opportunity inside "Cancel Contract" process to create the offset contract.  Pressing cancel returns the user to the cancel selection grid without creating the offset contract.


The settlement summary updates with the offset contract / delivery sheet information.  However only the selected contract schedule delivery sheet prints.  The offset delivery sheet that was created with the "Cancel With Offset" does not print.

After saving the offset contract, the offset contract is created, cancelled, hedge audit entries for add / cancel are created and the delivery sheet is created for the offset contract.  The user is returned to the selection grid.


NOTE:  The user is able to select multiple contract UOM's to cancel in a single session and is able to create a delivery sheet for each selection.  However, the UOM of the first contract selected is used to determine if the created delivery sheet will be included on the delivery sheet status screen and on the cancel contract settlement, which is existing functionality.