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

SAP Term: vostro account

• Component: FS-PE

• Component Name: Payment Engine

• Description: An account that a correspondent bank holds on behalf of another bank. A vostro account is an account in which a bank acts as custodian of another bank's account. A vostro account is also known as a loro account.

Smart SAP Assistant

• Key Concepts: 
  A vostro account is a type of bank account used in the SAP FS-PE Payment Engine component. It is a bank account held by a foreign bank in the currency of the country where the foreign bank is located. The vostro account is used to facilitate payments between two foreign banks. 
  
  How to use it: 
  The vostro account is used to facilitate payments between two foreign banks. The payment is initiated by the payer's bank, which transfers the funds to the vostro account. The payee's bank then withdraws the funds from the vostro account and transfers them to the payee's account. 
  
  Tips & Tricks: 
  When setting up a vostro account, it is important to ensure that all of the necessary information is provided, such as the name of the payer and payee, the amount of money being transferred, and any applicable fees or taxes. Additionally, it is important to ensure that all of the necessary documents are in place before initiating a payment. 
  
  Related Information: 
  The SAP FS-PE Payment Engine component also supports other types of accounts, such as nostro accounts and correspondent accounts. Additionally, there are various payment methods available within SAP FS-PE, such as wire transfers, checks, and credit cards.