Answer:
The following explains the difference betweenF110 and F111
F110 is used for payments of open invoices.
1. Can be used to pay open invoices in the customerand Vendor accounts.
2. Configuration of Bank determination shouldbe done in FBZP. Other than Bank determination you configure other stepsin FBZP for both F110 and F111.
3. No need for payment request clearing account.
4. Use alpha (A to Z) as payment method. Thisis just a good practice to distinguish between them and is not a SAP requirement.
F111 is used for payment of payment advicescreated through tcode F-59
1. Can be used to pay only payment requests createdby modules like Treasury, In-House cash etc.
2. Configuration path for bank determination is- IMG - Financial accounting (new) - Bank Accounting - Business transaction- Payment transaction - Payment request and payment handling.
3. You need for payment request clearing accountfor each company code.
4. Use numbers (0 to 9). This is just a good practiceto distinguish between them and is not a SAP requirement.
Though both are for automatic payments, F110 willpay only open items from vendors and customers. F111 can also pay'payment-requests' against GL items.
Generally for making payments towards any expense(say tax authorities) we will not create any vendors, but we can stillcreate payment requests by debiting the tax expense account and have thisrequest paid by automatic payment program (F111)
F111 is also used for making payment via paymentrequests for treasury activities where we cannot create vendors.
