When limit records are copied into a contract, the system sets effective dates if none are defined. If the records have effective dates, the system ensures that the dates fit within the start and end of the associated contract level: header, end user or default item, or item detail.

In a simple case, you can set up limits on a contract type without any effective dates, then create a contract based on that contract type. The contract start date is 1/1/07 and end date is 12/31/07. When limits are copied into the contract, they are copied with these effective dates.

Now consider what would happen if you had two sets of limits on the contract type with the following effective dates:

When you create the same contract from 01/01/08 to 12/31/08, you still have two sets of limits, but they are copied in with these dates: