2.9.1 Create Limits Structure

This topic describes the systematic instruction to create limit structures.

Specify User ID and Password, and login to Home screen.

1. On Home screen, click Supply Chain Finance. Under Supply Chain Finance, click Maintenance.
2. Under Maintenance, click Limits Structure. Under Limits Structure, click Create Limits.
   The Create Limits screen displays.

   Figure 2-55 Create Limits

   
   

   
   Description of "Figure 2-55 Create Limits"

   
   
3. Specify the fields on Create Limits screen.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 2-33 Create Limits - Field Description

   Field Name	Description
   Structure Description	Specify the description for the limits structure being created.
   Limit Type	Select the type of limit to map with the entity. The available options are: Advance Payment Assignment Concentrate Credit Cover Finance Invoice Main Recourse Non-Recourse Committed Uncommitted
   Entity	Select the entity for which limits should be set. The available options are: Buyer Import Factor Insurance Company Pool Product Program Supplier
   Buyer	Click the search icon to select the buyer for whom the limit needs to be defined.
   Import Factor	Click the search icon to select the import factor for whom the limit needs to be defined.
   Insurance Company	Click the search icon to select the insurance company for whom the limit needs to be defined.
   Pool Id	Click the search icon to select the pool id for whom the limit needs to be defined.
   Pool Description	Specify the description for the pool id selected.
   Product	Click the search icon to select the product for whom the limit needs to be defined.
   Program	Click the search icon to select the program for whom the limit needs to be defined.
   Supplier	Click the search icon to select the supplier for whom the limit needs to be defined.

4. Click Add to add the selected entity to the structure pane.
   A tile or a node for the entity is created in the structure pane.

   Figure 2-56 Entity added to Structure Pane

   
   

   
   Description of "Figure 2-56 Entity added to Structure Pane"

   
   
5. Click the icon in the main node to create a child node.
   An overlay window displays. Select the limit type, entity and the entity details to add a child node under the main node.

   Figure 2-57 Create Limits - Child Node Overlay

   
   

   
   Description of "Figure 2-57 Create Limits - Child Node Overlay"

   
   
6. Repeat the above step to create the entire limits structure. The number of immediate child nodes of a parent node appears in the tile of that parent node.

   Figure 2-58 Child Node added to main entity in the Structure pane

   
   

   
   Description of "Figure 2-58 Child Node added to main entity in the Structure pane"

   
   
   • Click the Tree View icon to view the limits structure in a hierarchical format.
   • Click the Table View icon to view the limits structure in a tabular format.
   • Use the mini navigation window in the bottom right corner to pan across the limits structure.
7. To define the limit parameters for a particular node/entity, click Options and click Edit.
   The Limit Details screen for the selected entity node displays.

   Figure 2-59 Create Limits - Limit Details

   
   

   
   Description of "Figure 2-59 Create Limits - Limit Details"

   
   
8. Specify the fields on Create Insurance screen.

   Note:

   The fields marked as Required are mandatory.

   For more information on fields, refer to the field description table.

   Table 2-34 Limit Details - Field Description

   Field Name	Description
   Limit Type	Displays the type of limit selected.
   Entity	Displays the entity for which the limit is being defined.
   Entity Id / Code	Displays the unique ID or code of the selected entity.
   Entity Name	Displays the name of the selected entity.
   External Line Id	Click the search icon to select the limit line ID in case the limits are to be retrieved from an external system. The sanctioned limit is fetched from the external system and populated in Sanctioned Limit, which then cannot be edited.
   Limit Currency	Select the currency in which the limits are to be defined.
   Limit Freeze	Switch this toggle ON to stop all limit-booking transactions in which the entity is involved, with respect to the limit structure. The transactions can be finance disbursement for invoices, purchase orders, or debit notes. Releasing of limits are however not affected by this toggle. Therefore, transactions such as settlements, continue to be processed even if this toggle is switched ON.
   Add Policy	Switch this toggle ON to link an insurance policy to the entity. This toggle appears only for a Buyer or Supplier entity type, when the main node is Insurance Company.
   Link Policy	Click the search icon to select the required insurance policy to link. This field is displayed only if  the Add Policy toggle is enabled.
   Policy Allocation Amount	Specify the amount to be allocated from the policy. By default, the actual policy amount is displayed. This field is displayed only if  the Add Policy toggle is enabled.
   Add	Click this button to add the selected policy to the grid.
   Reset	Click this button to clear the selected values in the fields.
   Overall Approved Limit	Displays the overall approved limit for the selected entity.
   Sanctioned Limit	Specify the limit amount to be allotted to the entity for the selected limit type. If an external limits system is linked, this field displays the limit value fetched from the system and the field becomes non-editable.
   Available Limit	Displays the limit amount that is available to the entity.
   Utilized Limit	Displays the limit amount that has been utilized.
   Blocked Limit	Displays the limit amount that has been blocked or reserved for in progress transactions.
   Effective From	Click the calendar icon and select the date from when the limit is effective.
   Expires On	Click the calendar icon and select the date when the limit expires.
   Adhoc Limit	Specify the adhoc amount to be allotted if the available limit falls short of the required amount for a specific transaction.
   Available Adhoc Limit	Displays the adhoc limit that is available to the entity.
   Utilized Adhoc Limit	Displays the adhoc limit amount that has been utilized.
   Blocked Adhoc Limit	Displays the adhoc limit amount that has been blocked or reserved for in progress transactions.
   Adhoc Limit Effective Date	Click the calendar icon and select the date from when the adhoc limit is effective.
   Adhoc Limit Expiry Date	Click the calendar icon and select the date when the adhoc limit expires.
   Exchange Rate	Displays the exchange rate between the parent entity’s limit currency and the child entity’s limit currency.
   Interchangeability Allowed	Switch this toggle ON to set the sanctioned limit of each child entity to the same value as that of the parent entity. If this toggle is switched off, then the sum of sanctioned limits of all child entities cannot exceed (must be less than or equal) that of the parent entity.
   Add Structure	Switch the toggle ON to link an existing limit structure to the entity. This linking can only be done for Buyer or Supplier entity types. This feature is used for linking the insurance or import factor limits to the buyer/supplier.
   Root Entity	Select the root entity to be added. This field is displayed only if  Add Structure toggle is enabled.
   Link Structure	Click the search icon to select the required structure to link. This field is displayed only if  Add Structure toggle is enabled.
   % Allocation	Displays the allocated limit percentage for the entity. This field displays the following value: (Sanctioned Limit + Adhoc Limit)/Total Sanctioned Limit. This field is displayed only if  Add Structure toggle is enabled.
   View Details	Click this hyperlink to view the details of the linked structure. This field is displayed only if  Add Structure toggle is enabled.
   Add	Click this button to add the limit structure to the grid. This field is displayed only if  Add Structure toggle is enabled.
   Reset	Click this button to clear the selected values. This field is displayed only if  Add Structure toggle is enabled.
   Total Sanctioned Limit	Displays the total sanctioned limit.
   Total Available Limit	Displays the total available limit.
   Total Utilized Limit	Displays the total utilized limit.
   Total Block Limit	Displays the total blocked limit.

9. Click Add Details to save the limit details for the entity.
   The sum of the sanctioned and adhoc limits appears in the node tile.

   Figure 2-60 Post Addition of Limit Details

   
   

   
   Description of "Figure 2-60 Post Addition of Limit Details"

   
   

   Note:

   If the Limits Freeze toggle is enabled for a specific node, then it is displayed in the node tile.
10. Perform the following steps to take action on the entity nodes.
    • Click Options in any node and click Edit to modify the limit details, if required.
    • Click Options in the main entity node and click Delete Hierarchy to delete all the nodes created.
    • Click Options in the child entity node and click Delete to delete the particular node.
11. Click Save to save the record and send it for authorization.