What is nostro account in SAP FS-LMS - Liquidity Management Suite?

SAP Term: nostro account

• Component: FS-LMS

• Component Name: Liquidity Management Suite

• Description: An account that a bank holds with another bank. Nostro accounts are usually held in the currency of the country in which the account is held. This makes cash management easier because currency does not need to be converted.

Smart SAP Assistant

• Key Concepts: 
  A nostro account is a type of bank account held by a financial institution in a foreign currency. It is used to facilitate international transactions and to manage liquidity. In the SAP FS-LMS Liquidity Management Suite, a nostro account is used to store and manage funds in foreign currencies. 
  
  How to use it: 
  In the SAP FS-LMS Liquidity Management Suite, a nostro account can be used to store and manage funds in foreign currencies. The account can be used to make payments in foreign currencies, as well as to receive payments from other countries. The account can also be used to manage liquidity by tracking the balance of funds in different currencies. 
  
  Tips & Tricks: 
  When setting up a nostro account in the SAP FS-LMS Liquidity Management Suite, it is important to ensure that the account is properly configured and that all necessary information is entered correctly. Additionally, it is important to monitor the balance of the account regularly to ensure that there are sufficient funds available for international transactions. 
  
  Related Information: 
  For more information about nostro accounts and how they are used in the SAP FS-LMS Liquidity Management Suite, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed information about how to set up and use nostro accounts in SAP.