Limit Types 

Definition

The limit type comprises limits and limit utilizations. When you define a limit type, you can assign individual limit characteristics or combinations of the various limit characteristics that are available in the system settings.

When you create a limit type filter, you use limit characteristics to restrict the respective limit type by freely definable ranges. Use of the limit type filter is optional. You can use it to create additional criteria to the limit characteristics of a limit type to help you make decisions, such as whether transactions are to be attributed to a particular limit type. You create limit type filters in the same place in Customizing in which you create limit types.

Use

Using the combination of the characteristic values of the limit type, the system selects the risks of the respective transactions and compares the total of these with the limits. You create limit types in Customizing by choosing ® Limit Management ® Define Limit Types.

Example

The following limit types were created in Customizing:

One-dimensional limit types	Multi-dimensional limit types
Country	Country/industry
Industry	Partner/limit product group/trader
Partner	Limit product group/trader
Limit product group (LGP)
Trader

In the example, the limit type partner/limit product group/trader is a combination of the limit characteristics business partner number, limit product group and trader.

The limit of EUR300,000 can, for example, be assigned to the values of the limit characteristics Euro Bank, money market and trader Connor. This means that trader Connor is allowed to conclude money market transactions with the Euro Bank up to a limit of EUR300,000.