Understanding configuration (FBZP) needed for executing F110


Below picture gives an overview about input/ output of F110 and needed configuration (vendor master and FBZP) for executing F110 in sap.

FBZP configuration required for F110

F110 picks the vendor invoices due to payment.

Using information from vendor invoice, vendor master as well as configuration maintained in T code: FBZP, F110 produces output payment advice and payment file.

Either printed hard copy of payment advice is sent to vendor or soft copy in the form of PDF is sent to vendor’s email id.

Payment file generated is sent to bank (from sap server to bank’s server) for payment to vendor. Once bank receives the file, bank makes the payment to vendor by taking money out of organization’s bank account and depositing in vendor’s bank account.

 

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

  • Payment advice contains below information:
  • Company’s name & address along with important contact details like phone number etc
  • Vendor’s name & address (fetched from vendor master)
  • 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.

 

A payment medium file normally contains below information:

  • Company details
  • Company’s bank account details (vendor to be paid from which bank account)
  • Amount to be paid to vendor and in which currency
  • Vendor bank account details (fetched from vendor master)

 

What configuration is maintained in FBZP and why it’s needed?

Below is the screenshot of FBZP configuration steps which needs to be setup for executing automatic payment program using T code: F110

FBZP configuration
FBZP configuration