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

SAP Term: correspondent account

• 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.

Smart SAP Assistant

• 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 used to manage and track international payments and transactions. These features include payment methods, payment terms, and payment schedules. Additionally, there are various reports that can be generated from the FI-BL Bank Accounting component that provide detailed information about payments and transactions.