What is a payee payment limit?

What does a supplier payment limit do?

A payment is a sum of money or count of transactions that will be applied to a payee.  This will allow the system to count the number of transactions or the spend amount.  Once you reach your limit you will be blocked from creating transactions without an approval for any additional spend. 

What is a Limit?

A limit could be; A year, a month, a quarter, a fiscal year or a sliding window.

Do all payees have to have the same limit?

No - you can set different limits for each payee as required.

Can you have multiple limits set up?

Yes. You can run multiple limits at the same time, this might take the form of a monthly limit and a yearly limit running at the same time. Or alternatively a yearly limit of spend and a yearly count of transactions. When either limit is exceeded the system will either ask for approval or block the transaction.

What is the purpose of a limit?

The purpose of these limits is to protect from over-spend and indicate when a payee should be taken into your strategic purchasing systems.

Is the reporting currency re-active?

Yes. If you buy something in dollars or euros it will be converted to your reporting currency so that your limits always remain correct.

If you have admin rights and need to set up payment limits please see our guide on “How to create a payment limit.”