Below picture gives an overview about input/ output of F110 and needed configuration (vendor master and FBZP) for executing F110 in sap.
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
ayment 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
GL ACCOUNTING
- What is SAP FICO ?What business requirement is fulfilled in this module?
- What is enterprise structure in sap fico?
- What is GL account? What is account group? What is operational chart of accounts?
- What is the need of country chart of account or alternate chart of account? How country chart of account helps fulfill a business requirement?
- What is the need for group chart of account? How group chart of account helps in consolidation of financial data?
- What is non leading ledger in sap fico?
- What is company code global settings? What global parameter is assigned to company code?
- What is fiscal year variant? Why fiscal year variant is assigned to company code?
- What is posting period variant? Why posting period variant is assigned to company code?
- What is field status variant? What is field status group?
- What is document type in sap? Explain the purpose of document type?
- Document date vs Posting date vs Entry date vs Translation date. Explain
- What is posting key? what is the use of posting key?
- Document header & line items capture information of business transaction.
- Everything about currency & exchange rate in sap.
- Foreign currency valuation in sap. Explain with example
- Retained earnings account helps in year end balance carry forward. Explain
- What is the significance of tolerance groups in sap?
- What parameters are maintained in GL master and how does it impact in document posting?
ACCOUNTS PAYABLE
- What is meant by accounts payable in sap?
- Understanding procure to pay (PTP) cycle and accounting document at each step.
- Understanding MM FI integration in very simple terms.
- Purchase order price determination in SAP. Explained in very simple words.
- House bank, Bank key, Account ID in SAP
- What configuration (FBZP) needed for executing F110 in sap ?
ACCOUNTS RECEIVABLE
- How sap overcomes challenges in accounts receivable process?
- What is customer reconciliation account?
- Understanding order to cash cycle in sap.
- Understanding SD FI integration in very simple terms.
- What is lock box? How lockbox helps in collection from customers?
TAX ACCOUNTING
- How sap helps in tax accounting?
- Tax configuration in sap: Tax procedure, Tax code & Tax jurisdiction code
- Concept of tax jurisdiction code & tax jurisdiction structure
- Significance of “Tax category & Posting without tax allowed” in GL master.
- Tax base amount and Discount base amount
- Assigning tax code V0 & A0 for non taxable transaction?
- Deductible input tax vs non deductible input tax
WITHHOLDING TAX
- Withholding tax in sap explained with example.
- How sap overcomes challenges in managing withholding tax?
- Withholding at the time of invoice or payment
- Withholding tax configuration in sap
- Business place & Section code in sap
- Withholding tax certificate numbering in sap
- Withholding tax report for filling tax returns
ASSET ACCOUNTING
- How sap helps in asset accounting?
- What is meant by asset accounting?
- What is the use of asset class?
- What is the use of depreciation key in asset accounting?
- Depreciation area and Chart of depreciation in sap.
- Derived depreciation area VS real depreciation area?
- Understanding asset accounting configuration needed in sap
- GL account determination for posting asset transaction
- Asset transaction and corresponding accounting document?
- How depreciation is posted in sap?
SAP CONTROLLING