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

SAP Term: separate provision of cover funds

• Component: FS-PE

• Component Name: Payment Engine

• Description: Provision of cover funds for payment orders whereby the banks do not have a clearing relationship no vostro/nostro account connection.

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• Key Concepts: 
  Separate provision of cover funds is a feature of the SAP FS-PE Payment Engine that allows for the separation of funds for different payment types. This feature allows for the creation of separate accounts for each payment type, such as cash, check, and credit card. This ensures that each payment type is handled separately and that funds are not mixed between different payment types. 
  
  How to use it: 
  To use the separate provision of cover funds feature, you must first create separate accounts for each payment type. Once the accounts are created, you can then assign each payment type to its own account. This will ensure that funds are not mixed between different payment types and that each payment type is handled separately. 
  
  Tips & Tricks: 
  When using the separate provision of cover funds feature, it is important to ensure that all payments are properly accounted for. This can be done by keeping track of all payments made and ensuring that all payments are properly recorded in the appropriate accounts. Additionally, it is important to ensure that all payments are properly reconciled with the bank statements to ensure accuracy. 
  
  Related Information: 
  The separate provision of cover funds feature is part of the SAP FS-PE Payment Engine. The Payment Engine is a comprehensive solution for managing payments and ensuring accuracy and compliance with financial regulations. Additionally, the Payment Engine provides features such as automated reconciliation, fraud detection, and reporting capabilities.