F110 executes vendor payments in SAP by using information from vendor invoices, the vendor master, and a configuration maintained in transaction code FBZP. F110 produces a payment advice document sent to the vendor and a payment file sent to the bank. The payment advice contains payment details like invoice numbers, amounts, and payment numbers. The payment file contains company and bank account details, payment amounts and currencies, and vendor bank account details to enable the bank to deposit funds in the vendor's account. FBZP configuration specifies settings for F110 like payment method, bank details, and file formats to ensure accurate execution of payments.

1. Understanding configuration (FBZP)
needed for executing F110
Below picture givesan overview about input/ output of F110 and needed configuration (vendor master
and FBZP)for executingF110 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 producesoutput 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 issent to bank (from sap server to bank’s server)for payment to vendor. Once
bank receivesthe file, bank makes the payment to vendor by taking moneyout of organization’s bank
account and depositingin vendor’s bank account.
Now let’sunderstand 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 serversas an acknowledgement to vendor about payment of vendor’s bills
 Payment advice containsbelow information:
 Company’s name & addressalong with important contact detailslike phone number etc
 Vendor’s name & address(fetched from vendor master)
 Note to vendor like “This is to kindly inform you that below payment hasbeen processed….”
 Detailsof payment made to vendor like invoice numberswhich are paid, payment amount,
Cheque number, RTGSnumber, NEFTnumber etc

2.  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 suppliesthe 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 receivesthe
payment file, bankdoes payment to vendor as per data provided in payment file.
Bank dictateswhat information it needs and in what format. Hence company needsto generate output
payment file as per bank’s requirement. Thisis referred aspayment medium file format.
Sap providesa list of predefined formatsthat can be modified to meet the bank’s requirement.
A payment medium file normallycontains below information:
 Company details
 Company’s bankaccount 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 FBZPconfiguration stepswhich needsto be setup for executingautomatic
payment program using T code: F110