What is advising bank in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: advising bank

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: The bank that advises the beneficiary of a letter of credit at the request of the issuing bank.

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• Key Concepts: 
  An advising bank is a financial institution that is used to authenticate a letter of credit (LC) issued by the issuing bank. The advising bank verifies the authenticity of the LC and then forwards it to the beneficiary. The advising bank also ensures that the terms and conditions of the LC are met before it is released to the beneficiary. 
  
  How to use it: 
  In SAP Treasury and Risk Management, an advising bank can be set up in the system by entering its details in the Bank Master Data. This includes information such as the bank’s name, address, and contact details. Once this is done, the advising bank can be used for authenticating letters of credit issued by an issuing bank. 
  
  Tips & Tricks: 
  When setting up an advising bank in SAP Treasury and Risk Management, make sure to enter all relevant information accurately. This will ensure that the advising bank can be used for authenticating letters of credit without any issues. 
  
  Related Information: 
  For more information on setting up an advising bank in SAP Treasury and Risk Management, please refer to the official SAP documentation.