Use the Settlement Limits tab region of the Limits window to specify the maximum daily cash settlement limits for your company and specific counterparties. Treasury calculates the limit utilization for daily settlement limits by adding potential payments to potential receivables. For example, if on a specific day you are scheduled to pay a counterparty $500,000 and that counterparty is scheduled to pay you $100,000, your daily settlement limit with this counterparty must be at least $600,000 to complete these transactions.
Attention: The limit utilization for daily settlement limits is not calculated using limit weightings, but rather the actual cash settlement amounts.
Define counterparties. See: Counterparty Profiles.
Define global limits. See: Defining Global Limits.
Navigate to the Limits window.
Choose the Settlement Limits tab.
Query or enter the Company that you want.
Enter the Counterparty Code for the counterparty that you want to create a daily settlement limit with this company.
If necessary, enter an Expiration Date for this company and counterparty combination.
To use this limit, enable the Authorized check box.
In the Limit Amount field, enter the maximum amount you are prepared to receive from and pay to this counterparty on any single day. Enter limit amounts in the reporting currency.
Save your work.