Creation of Bank Accounts (Vostro/Nostro)

Purpose

Bank accounts are those current accounts that banks manage among themselves. One of the banks is the account holder and the other bank is the account manager. The account manager manages the account of the correspondent bank as a vostro account and the account holder manages the offsetting account as a nostro account.

The vostro account is the account for which the bank statements are created and sent to the other bank by the account managing bank. The account managing bank creates the original settlement calculation and the offsetting calculation is mirrored on the nostro account of the correspondent bank.

Prerequisites

There has to be a product of the category Bank account before you can create the bank accounts.

Note Note

You define this product (as all other products) using the Product Configurator.

End of the note.

Do this in the Implementation Guide (IMG) by choosing Master data Product definition .
Create a product.
Under feature, choose ‘Special account type’, and choose bank account.
Define the product of the category bank account in accordance with your requirements.

Process flow

Choose Account Create and enter the data on the initial screen. As product, enter a product of the category Bank account .
On the "Basic data" screen in the section "Administration" you can see if the account is a vostro or a nostro account (depending on your default settings in Customizing, the account you create is either a vostro or a nostro account).

If you wish to change the bank account category (default value is a vostro account and you wish to create a nostro account), in the section "Administration" choose the time breakdown icon and enter the bank account category you require. Prerequisite for this is that you have already made an entry in the business partner field.
Enter the other data for this account.

You enter the bank account data in the same way as for customer accounts.

Result

The bank account has been successfully created. The process for changing the account management is described under Change in Account Management .

Note Note

Note:

It is not absolutely necessary to execute account balancing for a nostro account. However, you can execute the balancing for the purpose of controlling the balancing performed by the other bank. The following special features apply:

End of the note.

Credit interest is calculated for debit balances.
Debit or overdraft interest is calculated for credit balances.
The balancing results determined during account balancing are not posted, as these are posted into the current account system from external payment transactions or manually.

Note that nostro account reconciliation is not included in the current account system.