Applicant users of RIVO have the ability to set up Limits for the Banks that they have added.
This allows the corporate to manage how much business they do with each Bank/Financier.
When creating a Deal, the limit is used up and checked against.
If the limit is breached a validation error will be issued.
When the Deal is finally closed, then the amount is returned to the Limit.
A point to note:
This limit is set by the Corporate themselves, there is no data supplied by the Bank.
To set a Limit, first Add your Financier under the Administrator > Banks menu
Then in the Administrator > MyBank > Limits, you can see them.
Update the Credit Limit value, and when you use that Bank in a deal, the limit is reduced.
You also get a graphic showing how much of the limit is available
By choosing the date that is valid through the option, the user can also specify the validity of the limit for a certain period.
Planned: The user has the ability to tick the limit planning box during deal initialization; if checked, the limit will appear in the planned limit.
Utilized: The deal amount will appear in the utilized limit as soon as the corporation releases the contract.
Available: After deducting the planned and utilized limits, the available balance will appear in the available limit.
Available Amount = Credit Limit - Utilized amount - Planned Amount
If you exceed the Available Limit, you will get an error whilst keying it.
Set Limit using a different currency.
As a corporate admin user while setting the limit for the bank or unit per bank, the user should be able to set the currency along with the amount so that the limit can be set in any applicable currency.
- The user should be able to choose the currency on the limit screen
- The user can change the currency as long as the limit amount is not planned or utilized.
- To calculate utilized and Planned amounts, currently, the conversion is done using the base currency. The conversion should be applied based on the limit set currency. (Guarantee amount -> Base currency -> Limit currency)
Limit per organization unit.
We can set a specific spending limit for each unit. This means the corporate can decide how much money each of its units can spend when dealing with a particular bank. When a unit makes a deal with a designated bank, the system will calculate and keep track of the spending limit for that specific unit."
In the past, corporations could only set limits for each bank they worked with. Now, they have the flexibility to set individual limits for each branch or unit associated with a particular bank.
How to set and check Limit organization per Unit.
- Log in with the corporate admin user account.
- Navigate to Domain Data and click on My Banks.
- Go to the Limits tab and verify if tiles have been created for the bank's headquarters.
- Check if both the corporate and bank default selections are set to HQ.
- Choose the corporate unit for which the limit is maintained in the bank's unit.
- Click on the card to select the bank's unit (exposed).
- Go to Limit page and check the drop-down list to select the sub-unit/entity,
- Change the selection to the corporate unit and its corresponding bank's unit.
- Specify a credit limit amount, currency, and valid until date.
- Create a guarantee deal by selecting the Assigned Unit and My Bank.
- Once the transaction status is "Issuance - Approved," ensure that the limit is deducted from "Available" in the respective tile and moved to "Utilized."
Guarantee/LC amount has exceeded the bank's limit.