Below picture gives an overview about input/ output of F110 and needed configuration (vendor master
and FBZP) for executing F110 in sap.
Now let’s understand what information is contained in payment advice? What information is contained
in payment file? This will help you understand what information is required in vendor master and what
configuration needed in FBZP.
Payment advice
In order to inform the vendor about payment, a document (payment advice) is sent to vendor either as
printed hard copy or soft copy over email.
Payment advice servers as an acknowledgement to vendor about payment of vendor’s bills
Company’s name & address along with important contact details like phone number etc
Note to vendor like “This is to kindly inform you that below payment has been processed….”
Details of payment made to vendor like invoice numbers which are paid, payment amount,
Cheque number, RTGS number, NEFT number etc
Company’s logo might be present on bottom of the advice document.
Payment file
Payment to vendor has to be done by the bank. Company supplies the required information to the bank
in the form of file (xml or txt).
As a result of F110, output payment file gets created and stored at a particular location in company’s
server. This file is then sent to bank’s server by an automated batch job program. Once bank receives the
payment file, bank does payment to vendor as per data provided in payment file.
Bank dictates what information it needs and in what format. Hence company needs to generate output
payment file as per bank’s requirement. This is referred as payment medium file format.
Sap provides a list of predefined formats that can be modified to meet the bank’s requirement.
Company details
Company’s bank account details (vendor to be paid from which bank account)