What is clearing agreement in SAP FS-PE - Payment Engine?

SAP Term: clearing agreement

• Component: FS-PE

• Component Name: Payment Engine

• Description: Agreement in which you can specify the conditions for the following actions: Transfer of payment orders between banks Connection to the account-managing system Each bank involved in the payment transaction has at least one clearing agreement with another clearing institute. The following are examples of what is specified in the clearing agreement: Whether payment items are transferred individually or together How payment information is exchanged How the transaction value is procured.

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• Key Concepts: 
  A Clearing Agreement is a payment agreement between two parties in the SAP Payment Engine (FS-PE) component. It defines the conditions under which payments are made between the two parties, such as the payment method, currency, and payment terms. The Clearing Agreement also defines the rules for how payments are processed and reconciled. 
  
  How to use it: 
  In order to use a Clearing Agreement, both parties must agree to the terms of the agreement. Once the agreement is in place, payments can be made between the two parties according to the terms of the agreement. The Clearing Agreement can be used to process payments in multiple currencies and payment methods, as well as to reconcile payments between the two parties. 
  
  Tips & Tricks: 
  When setting up a Clearing Agreement, it is important to ensure that all of the terms are clearly defined and agreed upon by both parties. This will help ensure that payments are processed correctly and that any discrepancies can be quickly resolved. Additionally, it is important to review the Clearing Agreement periodically to ensure that it is still valid and up-to-date. 
  
  Related Information: 
  For more information on setting up and using a Clearing Agreement in SAP Payment Engine (FS-PE), please refer to SAP Help documentation or contact your local SAP support team.