What is advising bank in SAP SD-FT - Foreign Trade?

SAP Term: advising bank

• Component: SD-FT

• Component Name: Foreign Trade

• Description: A bank that advises an exporter of a letter of credit or bank that sends the original letter of credit to an exporter.

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• Key Concepts: 
  An advising bank is a financial institution that provides a guarantee to the buyer of goods that the payment will be made by the issuing bank. This guarantee is provided by the advising bank in the form of a letter of credit. The advising bank is usually located in the buyer's country and is responsible for ensuring that the payment is made to the seller. 
  
  How to use it: 
  In SAP SD-FT Foreign Trade, an advising bank can be used to facilitate international trade transactions. The advising bank will provide a letter of credit to the buyer, which guarantees payment to the seller. The seller can then use this letter of credit to secure payment from the buyer. 
  
  Tips & Tricks: 
  When setting up an advising bank in SAP SD-FT Foreign Trade, it is important to ensure that all relevant information is entered correctly. This includes the name and address of the advising bank, as well as any other relevant details such as contact information and payment terms. 
  
  Related Information: 
  For more information on how to set up an advising bank in SAP SD-FT Foreign Trade, please refer to SAP Help documentation or contact your local SAP support team.