The Reservation capacity setting, called Reservation capacity per pro in Team accounts, allows you to limit the total number of reservations that can be booked on a given day. This setting applies to any reservation, as opposed to the Capacity setting on individual reservation items which only applies to bookings for that reservation.
In Team accounts, this setting applies to each individual team member who is eligible to offer reservations. For example, if there are three total team members (including the business owner) eligible to offer reservations and the Reservation capacity per pro is five, the total number of reservations that can be booked at any one time for the entire business would be 15.
The day a reservation is checking out does not count against your overall capacity. So if you have a Reservation capacity of five, you have five reservations booked, and one of those five is checking out today, you would still have one remaining slot in your capacity today.
The Capacity setting on individual reservations does supersede your overall capacity. So if a specific reservation item has a capacity of two, even if your Reservation capacity setting is five, you could still only be booked for up to two reservations for that specific reservation item.
The Reservation capacity setting is used to calculate the Reservation capacity setting included in the reporting dashboard.