F110 – Automatic Payment Run in SAP

F110 – Automatic Payment Run in SAP.

Key Features:

• Select open items automatically based on various conditions (due date, vendor, payment terms, etc.).
• Eliminate manual payments by automating the payment process.
• Pay multiple open items in a single payment run.
• Save time and improve efficiency by automating payment processing.
• Increase accuracy by reducing human error in the payment process.

Pre requisites to run APP: for instance

• FBZP configuration with payment method, House bank etc.
• Should be maintained payment method in Vendor/Customer/Business partner record.
• Number range should be defined for the payment.
• We need open items to make payment using F110.

Note: FBZP – Automatic Payment Program Configuration in SAP

Now follow the process of APP run.

Vendor invoice posting, Go to T code: FB60 and give all the required details like below

Go to T code: FBL1N, to check the open items

After that, user need to make payment to this open item.

Automatic payment program run

Go to T code: F110

Give Run date (when we run) and identification (can be anything)

Click on parameters tab.

Give – Posting date, Company code, Payment method, Next posting date and vendor.

Firstly, next posting date means, we are telling to sap system that i will come back on this date again to run app.

Additional log tab – Give details like below.

Click on save button

Come to status tab and click on ” Proposal run”

select start immediately and click on continue button.

Keep on press enter untill payment proposal has been created.

Now click on Display proposal. In short, explaining

• Display proposal: It will help us how many open items were picked.
• Edit proposal: On the other hand this option will allow users to change the Payment method, House bank, Account ID details.

Success, line item showing in green indicator, means item has no issue and it is ready to make payment. Click on back button.

Now click on Payment run.

Select start immediately and click on continue button.

After that we need to keep on press enter till you get “Payment run has been carried out”.

As a result payment done.

Finally done with F110 – Automatic Payment Run in SAP. But check configuration, master data required fields carefully otherwise we will get many issues.

Post APP run Explanation

Payment Advice: After the payment run, we are Sending the payment advice to the vendor, informing them of a payment made, with details like amount, date, and reference.

DME (Data Medium Exchange): After the payment run, we are sending a DME file to the bank, instructing them to make a payment to the vendor, essentially saying “pay this vendor” along with the necessary payment details.

Other contents you may like in SAP:

• APP configuration in SAP: Click here
• How to Define House bank in SAP: Click here
• How to create Account ID in SAP: Click here
• How to Create a Check Lot in SAP: Click here

SAP FICO Configuration topics:

• SAP Finance Enterprise structure: Click here
• SAP Finance GL Accounting: Click here
• SAP Finance Accounts Payable: Click here
• SAP Finance Accounts Receivable: Click here
• SAP Finance Bank Accounting: Click here
• SAP Finance New Asset Accounting: Click here
• How to Create a Controlling area in SAP: Click here
• SAP Controlling – Cost Element Accounting: Click here
• SAP Controlling – Cost Center Accounting: Click here