Limits 

Definition

A limit is the maximum amount of limit utilizations, or drawings. It refers to certain values of the limit characteristics of a limit type.

Use

The limit acts as an amount against which checks are made to determine whether the limit has been exceeded. Each limit has a validity period.

If you want to change the value of the limit, then instead of invalidating the limit and creating a new one, you can simply split the validity period of the limit. You can define whether you want to change the future part of the limit only, or change the history of the limit as well. The new part of the limit is different from the old part of the limit only in terms of its amount and its validity period. The validity period of the new limit is the remaining validity period of the original limit. If the split limit contains one or more interim limits, then the system adjusts these appropriately.

Structure

A limit, which applies for certain limit characteristic values, is comprised of the following:

·       A 'valid from' date

·       An internal 'valid to' date

·       An external 'valid to' date

·       A limit currency (you can change the currency even after you have saved the limit)

·       An internal limit amount

·       An external limit amount

·       A critical limit utilization

·       A maximum risk commitment period

·       Administration data (origin of the limit, release status and review date).

·       Data about the interim limit

·       Data about the limit transfer