What is 'foreign country indicator' in SAP FS-PE - Payment Engine?

foreign country indicator - Overview

• Component: FS-PE

• Component Name: Payment Engine

• Description: Indicates the currency in foreign payment transactions.

foreign country indicator - Details

• 
  Key Concepts: 
  The foreign country indicator is a component of the SAP FS-PE Payment Engine. It is used to identify whether a payment is being made to a foreign country or not. This indicator is used to determine the applicable tax and exchange rate for the payment. 
  
  How to use it: 
  The foreign country indicator is set in the payment document when creating a payment. The indicator can be set to either “Yes” or “No” depending on whether the payment is being made to a foreign country or not. 
  
  Tips & Tricks: 
  It is important to ensure that the foreign country indicator is set correctly in order to ensure that the correct tax and exchange rate are applied to the payment. 
  
  Related Information: 
  For more information on the SAP FS-PE Payment Engine, please refer to the SAP Help Portal.