What is nostro account in SAP FS-PE - Payment Engine?

SAP Term: nostro account

• Component: FS-PE

• Component Name: Payment Engine

• Description: A correspondent or internal account that banks use for operations with other banks. Example: Assume that bank A issues a credit card bill to a customer and the customer pays the bill in bank B. Bank A has a nostro account with bank B. Bank B makes a deposit in bank A's nostro account with the payment of that credit card bill.

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• Key Concepts: 
  A nostro account is a bank account held in a foreign currency by a bank in another country. It is used to facilitate international payments and currency exchange. In the SAP Payment Engine (FS-PE), a nostro account is used to store funds in foreign currencies and to make payments in those currencies. 
  
  How to use it: 
  In the SAP Payment Engine, a nostro account can be used to store funds in foreign currencies and to make payments in those currencies. The nostro account can be set up with the bank that holds the account, and then configured in the SAP system. Once configured, the nostro account can be used to make payments in foreign currencies. 
  
  Tips & Tricks: 
  When setting up a nostro account, it is important to ensure that the correct currency is selected for the account. Additionally, it is important to ensure that the correct bank details are entered into the SAP system when configuring the nostro account. 
  
  Related Information: 
  For more information on setting up and using a nostro account in the SAP Payment Engine, please refer to the SAP documentation on FS-PE Payment Engine.