Use the Global Limits tab region of the Limits window to define global limits for a company and assign each global limit a limit type and limit amount. A global limit defines the amount of money or exposure you are willing to risk on a specific deal or activity, regardless of counterparty. For example, you can create a set of global limits for these limit types:

• Foreign Exchange

• Committed Funding

• Uncommitted Funding

• Derivatives

• Investments

You can also create global limits to group your investments by credit ratings, for example:

• AAA Investments

• AA Investments

• BB Investments

The limit utilization for a global limit is recalculated every time you enter the specific limit type. For example, if you define a global limit of 1,000,000 USD for funding deals, Treasury calculates the total limit utilization for funding deals by adding the limit utilization of each new funding deal to the limit utilization of any outstanding funding deals, regardless of counterparty. If you exceed a global limit, you receive a warning.

Prerequisites

• Define limit types. See: Defining Limit Types and Limits Monitoring.

• If you are defining global limits that include descriptive flexfield information, define the descriptive flexfields that you need. See: Defining Descriptive Flexfields.

To define a global limit

1. Navigate to the Limits window.

2. Choose the Global Limits tab.

3. Query or enter the Company that you want.

4. Enter a unique Limit Code and Limit Name for the global limit.

   Note: Use generic names for global limits so that you can use them with your counterparties.

5. Assign a Limit Type to the global limit.

6. To use this limit, enable the Authorized check box.

   Attention: If you authorize the limit for use after you have already entered deals, you must run the program Update Limit Utilization to ensure that all deals are included when Treasury calculates your limit utilization. See: Update Limit Utilization.

7. In the Limit Amount field, enter the maximum amount you are prepared to risk on this type of deal. Enter limit amounts in the reporting currency.

8. In the [] field, complete the descriptive flexfield information as necessary, such as to enter facility information.

9. Save your work.