What is clearing house in SAP SRD-FIN-VCM - FIN-Financial Value Chain Management?

SAP Term: clearing house

• Component: SRD-FIN-VCM

• Component Name: FIN-Financial Value Chain Management

• Description: A financial institution, usually a bank, that acts as an intermediary when a payment transaction takes place between two financial institutions. The clearing house receives the payment instrument and payment instructions from the financial institution that is making the payment and conveys the payment to the receiving financial institution. Examples of payment transactions processed in this way include, check, credit card, and direct debit payments.

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• Key Concepts: 
  A Clearing House is a component of SAP Financial Value Chain Management (SRD-FIN-VCM) that enables companies to manage their financial transactions. It is a centralized system that allows companies to process payments, reconcile accounts, and manage cash flow. The Clearing House also provides a secure platform for companies to exchange financial information with other organizations. 
  
  How to use it: 
  The Clearing House can be used to process payments, reconcile accounts, and manage cash flow. Companies can use the Clearing House to securely exchange financial information with other organizations. The Clearing House also provides a secure platform for companies to store and access financial data. 
  
  Tips & Tricks: 
  When using the Clearing House, it is important to ensure that all financial information is accurate and up-to-date. Companies should also ensure that their security protocols are up-to-date in order to protect their financial data from unauthorized access. 
  
  Related Information: 
  The Clearing House is part of SAP Financial Value Chain Management (SRD-FIN-VCM). Other components of SRD-FIN-VCM include Accounts Payable, Accounts Receivable, Cash Management, and Treasury Management.