In RIVO, a unit is designated as a guarantor, the system should allow for the definition of its limit. If a unit, within the organizational structure, is functioning as a financier (excluding corporate units initiating deals), it should have the capability to set its limits per unit within its corporate structure.
After designating a unit as a guarantor, its now available in the administrative list of 'My banks'. This inclusion allows administrators to set the unit's details as a bank.
How to set the unit as a Guarantor:
By choosing Home> Admininistator> Organization Structure, the admin user can designate the unit as a guarantor.
In the Limits menu, the administrator will find the 'unit as a guarantor' listed among the banks for which credit limits can be established. By clicking on the 'Edit' icon, the user can define the credit limit. Subsequently, the system will display the 'Available Limit' and 'Utilized Limit', mirroring the current presentation for other banks as well you can check the Limit page to set and view the available and utilized amount of the Unit set as a guarantor.
When creating a guarantee or Import LC deal, with 'Unit as a guarantor' selected as 'My Bank' the deal amount will be reflected as 'Utilized Limit' and the equivalent sum will be deducted from the 'Available Limit'. If the deal amount surpasses the 'Available Limit', the system will generate a warning message identical to the one displayed for other banks: 'Approving this deal will breach your available limit with the selected financier'.
Please refer to the animated GIF to understand the process of setting limits for Guarantor as a Unit and performing checks
Rivo enables the user to revoke the chosen unit as a guarantor.
Note: If there are any open deals under that unit, it is not possible to revoke the unit from the guarantor.