Limit Characteristics 

Definition

There are four types of limit characteristics:

·       Direct limit characteristics

·       Derived characteristics

·       Free (or custom) limit characteristics

·       Generated characteristics

Use

You need to assign at least one limit characteristic to each limit type. In the application, you can then in turn store a limit for any combination of limit characteristic values.

Structure

You can differentiate between direct and derived limit characteristics. Direct limit characteristics are those derived directly from the data of a transaction. Derived limit characteristics are those derived from direct characteristics, such as the business partner.

Direct characteristics:

·       Company code

·       Business partner

·       Limit product group

·       Portfolio

·       Trader

·       Currency as a limit characteristic

·       Monitoring unit

·       Internal organizational unit

·       Country risk country

Derived characteristics:

·       Country (from business partner)

·       Industry (from business partner)

·       Rating (from business partner)

·       Country rating (from country risk country)

The limit characteristics internal organizational unit, country risk country and country rating are dependent on the use of the country risk functions that are only available in Banking.

Free (custom) characteristics:

You also have the option of creating 15 free characteristics as limit characteristics. You can derive these from the characteristics provided by SAP with the help of the SAP enhancement concept. One example of a free limit characteristic could be a geographical group of countries with the characteristic values Asia, Latin America, North America and Western Europe. In this case, the values would be derived from the characteristic country of the business partner.

Generated characteristics:

You are also able to take characteristics from the active analysis structure in the Market Risk component, generate them in Limit Management, and use them there as limit characteristics. If you are using generated characteristics, you are able to use them in all Limit Management functions in the same way as direct characteristics.