What is provision of cover funds in SAP FS-PE - Payment Engine?

SAP Term: provision of cover funds

• Component: FS-PE

• Component Name: Payment Engine

• Description: Provision of the offset value for the files that are directly exchanged in the bilateral exchange between banks. There is normally no connection between the vostro/nostro accounts of these banks.

Smart SAP Assistant

• Key Concepts: 
  Provision of cover funds is a feature of the SAP FS-PE Payment Engine that allows for the automatic transfer of funds from one account to another in order to cover a payment. This feature is useful for businesses that need to make payments but do not have sufficient funds in their accounts. 
  
  How to use it: 
  To use the provision of cover funds feature, you must first configure the payment engine with the necessary accounts and settings. Once configured, you can then set up a payment order with the necessary details, such as the amount to be transferred and the source and destination accounts. The payment engine will then automatically transfer the funds from the source account to the destination account in order to cover the payment. 
  
  Tips & Tricks: 
  It is important to ensure that you have sufficient funds in your source account before setting up a payment order with the provision of cover funds feature. If there are not enough funds in the source account, then the payment will not be successful. 
  
  Related Information: 
  For more information on how to configure and use the provision of cover funds feature, please refer to SAP's documentation on FS-PE Payment Engine.