To assign standard or individual limits to an account, proceed as follows:

1. Go in change mode into the account whose limits you wish to change.
2. Choose the limits screen.
   You are now in the limits overview where the following sections are displayed:

- Account limits - account overdraft limit, internal and external account limit

- Interest compensation limits - needed for interest compensation

- Other limits - these are displayed if you have defined your own limit categories in the Implementation Guide (IMG).

The system only displays the currently valid limits. Using the time breakdown icon you can branch to the detail display of every limit category supplied by SAP.

3. Choose the time breakdown icon.
4. Choose Create limit.
5. Now you can decide if you want to assign a standard limit (the reference limits used for this are predefined by Customizing) or if you want to individually control limit assignment. You have the following options:

Reference limits:

6. Specify the validity period and select the ID of a reference limit. Any specified individual limit amount is always overwritten by the limit amount of the reference limit. The account currency applies as currency.

 
Reference limits can change in the course of time. To enable you to react quickly to changes in the reference limits, by choosing Environment ® Current settings you have the option of making adjustments. You can change a reference limit without having to create a new reference limit with a new ID and without having to maintain it in the affected accounts. Furthermore, the change is valid in the past and does not lead to erroneous account balancing results.

Individual limits:

7. Enter the validity period, the amount and the currency.
8. Choose Continue.

 
Whether or not the limits are subject to the principle of dual control is defined in Customizing. If the principle of dual control is defined, the limits must be released by another user with authorization for the account before they can be used.
Note that overdraft limits must always be released if they are subject to the principle of dual control. If overdraft limits exist that are not released, the account is not balanced. The unreleased limit is only taken into consideration for a simulation.

If the limit check is activated for the product, it is possible to maintain the internal limits for the account.

An internal limit must exist at all times. The system enters limits for any missing intervals. To do this, the system sets the indicator ‘Limit check’ and sets the limit amount at 0. If the limit check for the product is inactive, the system sets a limit on the account anyway. This limit has the validity period 01/01/0001 - 12/31/9999, the amount is zero and the limit check is inactive.

Activate the limit check in the Implementation Guide (IMG) by choosing Master data ® Product definition ® Product.