What is 'SWIFT code' in SAP FI - Financial Accounting?

SWIFT code - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: The Society for Worldwide Interbank Financial Telecommunication. Within the context of international payment transactions, the SWIFT code standard throughout the world enables banks to be identified without the need to specify an address or bank number. SWIFT codes are used mainly for automatic payment transactions.

SWIFT code - Details

• 
  Key Concepts: 
  SWIFT code is a unique identification code used by banks and financial institutions to identify themselves when sending and receiving money. It is an international standard for identifying banks and is used by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The SWIFT code consists of 8 or 11 characters, which are divided into four parts: the bank code, country code, location code, and branch code. 
  
  How to use it: 
  In SAP Financial Accounting (FI), the SWIFT code is used to identify the bank when making payments. It is entered in the Bank Master Data record in the Bank Details tab. The SWIFT code is also used when creating payment orders in the Payment Program. 
  
  Tips & Tricks: 
  When entering a SWIFT code in SAP FI, make sure that all 8 or 11 characters are entered correctly. If any of the characters are incorrect, the payment order may not be processed correctly. 
  
  Related Information: 
  The SWIFT code is also known as a Bank Identifier Code (BIC). It is important to note that not all banks have a SWIFT code, so it is important to check with your bank before entering it into SAP FI.