Limit management at portfolio level and (not BP level) - Not utilized

[Former Member]

Hello Experts

We have two trading units.. Unit A and Unit B. They are created as portfolios.

The executes trade in Future, Commodity Forwards and Options across in three company codes. There are around 15 Counter parties (business partner) with whom they carry out the trades.

Our management has given them open position limit of Rs.50 Lakhs each, in a day (of all company code together). It is of no matter, they trade in futures, commodity or options or trade with any of the 15 counter parties. They take position in any of the three company codes. Total of three company code should exceed Rs.50 Lacs.

This limit is restricted on total open position (at the day end) and not counterparty wise or product type wise.

I tried configuring limit management. I created did other settings like automatic financial object in transaction master data, activation of integrated transaction check, limit type etc. I gave characteristic as Company Code and Portfolio (and not business partner) in limit type. I do not think there is any setting in product type definition or transaction type definition

Then I created limit (only internal limit) in TBL1 and saved it.

When I did FTR_CREATE for 70D (Futures), I didn't got the tab for default risk. I do not why. Further when I went into JBDO, default risk rule tab is there. Refer screenshot. I didn't entered anything and saved default risk rule (since i want at portfolio level).

I saved FTR_CREATE transaction and then ran KLNACHT. It showed no output with message

-No active external transactions relevant to credit limit were selected.

-The financial object numbers for determining issuer risk are missing.

- Unable to select any security positions.

In TBLB also it showed entire limit amount as unutilized amount. Please help why it does not utilize inspite of settings.

-MG.

[former_member198450]

Hi Meena,

Please check below customization.

IMG--Credit Risk Analyzer- Basic Settings-Automatic Integration of Financial Objects in Transaction Master Data-Foreign Exchange/OTC Derivatives--Activate/Deactivate Financial Object Integration

Here activate for your company code and assign the product type.

Check the rule

IMG -Credit Risk Analyzer- Basic Settings-Automatic Integration of Financial Objects in Transaction Master Data-Foreign Exchange/OTC Derivatives--Activate -Derive Default Risk Control Parameters for Foreign Exchange

IMG -Credit Risk Analyzer-- Limit Management- Define Limit Product Groups

IMG -Credit Risk Analyzer-- Limit Management- Define Limit Types

Accounting- Financial Supply Chain Management-- Treasury and Risk Management- Credit Risk Analyzer- Master Data- Limits-- TBL1 – Maintain

Hope this will help.

Regards,

Jain

[joao_ferreira10]

I am having the same issue.

did you get it solved by now?

thanks!

[former_member226654]

Dear All

Please maintain the derivation rule for the same..t-code is KLABL_MM. Maintain there product group and and portfolio..It isin SPRO node..please try and let me  know

Best Regards

Bajaj Pankaj