What is 'correspondent account' in SAP FI-BL - Bank Accounting?

correspondent account - Overview

• Component: FI-BL

• Component Name: Bank Accounting

• Description: An account that functions as a LORO/NOSTRO account for interbank transactions. In Russia, it is a bank's account at its clearing house. In payment orders, and in other payment documents where you give a bank account number, you must also state the bank's correspondent account.

correspondent account - Details

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  Key Concepts: 
  A correspondent account is a type of bank account used in international banking. It is a bank account held by one bank (the “correspondent”) on behalf of another bank (the “principal”). The correspondent account is used to facilitate international payments and transactions between the two banks. In SAP, the correspondent account is used in the FI-BL Bank Accounting component to manage and track international payments. 
  
  How to use it: 
  In SAP, the correspondent account is used to manage and track international payments. The account can be set up in the FI-BL Bank Accounting component. Once the account is set up, it can be used to make payments and transactions between the two banks. The account can also be used to track payments and transactions, as well as to monitor the status of payments and transactions. 
  
  Tips & Tricks: 
  When setting up a correspondent account in SAP, it is important to ensure that all of the necessary information is entered correctly. This includes the name of the principal bank, the name of the correspondent bank, and any other relevant information. Additionally, it is important to ensure that all of the necessary documents are uploaded correctly. This includes any documents related to the payment or transaction, such as invoices or contracts. 
  
  Related Information: 
  The FI-BL Bank Accounting component also includes other features that can be