[email protected]
My Account
  • Home
  • Blog
  • eBooks
  • ECC/S4 system Access
  • About
  • Contact Us
  • My account

No products in the cart.

  • Home
  • Blog
  • eBooks
  • ECC/S4 system Access
  • About
  • Contact Us
  • My account

No products in the cart.

  • Home
  • Blog
  • eBooks
  • ECC/S4 system Access
  • About
  • Contact Us
  • My account

No products in the cart.

  • Home
  • Blog
  • eBooks
  • ECC/S4 system Access
  • About
  • Contact Us
  • My account
Blog
Home General SAP What is MT101 file format and it’s application in SAP
General SAP

What is MT101 file format and it’s application in SAP

SAP College August 24, 2021 0 Comments

MT101 message is a request to transfer fund from payer’s account to receiver’s. To make the transactions like this, MT101 message format is used to do the communication.

Below is the sample MT101 file format:

MT101 File format
MT101

Why and where MT101 message type is used?

Well it can be understood if you look at the body of MT101 format. The body of SWIFT MT101 Message contains header, sender/ordering party details and customer/receiving party details. It means there will be blocks of each transaction in MT101 file and each transaction block will contain sender and receiver details.

Now let’s look at the other file formats, which body contains header, transaction details and footer. So these formats are specifically for sending payment from one bank to other receiver’s banks. But MT101 file is made for paying through multiple banks to many banks.

In easy words as mentioned above each transaction will have one sending bank and one receiving bank in MT101 format. So in single file there might be multiple sending banks and multiple receiving banks.

Also Read: Note to Payee Functionality

Hopefully now we understand use of MT101 message but now question arises is how a company/organization use this and how it can be helpful than other file formats?

To understand the answer of this question, We would like give you a scenario. Imagine a multinational company based in USA, who is spread across America having hundreds of company code and thousand bank accounts.

Now when in SAP you do the payment run from each bank account there should be a payment file configured for each bank. Imagine the efforts of having this much DME structures and payment files. It’s a huge activity of maintaining these file formats and matching the all requirements. This is where MT101 helps. With this you can use MT101 format for every bank. All the payment files from all banks will be created in MT101 format.And we know the structure of MT101 (header, sender details, receiver details). Now the trick here is, we don’t send MT101 directly to bank unlike in other file formats. Because we don’t know whether bank will understand MT101 or not.

Read eBook: Controlling – Profitability analysis (CO-PA): Comprehensive coverage of the SAP CO-PA module

So we send all the files to a middle man i.e. SWIFT which act as a middle-ware here and then SWIFT reads the MT101 and take call to which bank this file should go for payment. This is the reason in each transaction MT101 haves details of sending bank/company. This process is helpful to the organisations who use IHC (in house cash management). Who have worked on the IHC might be easily relate to this or find how useful is this.

You can also read this blogpost to know more about MT101 file format.

Thanks for reading, if you want to learn more about bank payment files and DME in SAP then you can checkout this eBook.

14
932 Views
AboutSAP College
SAP College is a knowledge portal for all of those who want to learn SAP. This is a one-stop reference for your entire SAP needs. Here you will find blogs that will help you to point out daily support issues. The blog covers technical, educational, and psychological aspects of working with SAP, mostly from the point of view of consultants or people responsible for implementing SAP software.
In Socials:
What is SAP Co-Pilot?PrevWhat is SAP Co-Pilot?June 11, 2021
Note to Payee FunctionalityDecember 18, 2021Next

Related Posts

General SAP

The Art of Google Search [Must read guide for every SAP consultant]

Hi all, Hope everyone is doing good. Here I am back with another blogpost....

Shubham Chavan December 18, 2021
General SAP

How to schedule background jobs in SM36 (Easiest way to schedule job using Wizard)

Background job in SAP First thing first, lets understand what background job is...

SAP College February 4, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Home
  • About
  • Contact
Categories
  • ABAP 7
  • FICO 18
  • General SAP 22
  • MM 1
  • SD 2
Products
  • ECC 6.0 EHP8 - EWM Server ₹1,499.00 – ₹2,499.00
  • Manual and electronic bank reconciliation in SAP: Step by step guide for EBS with real time business scenarios ₹250.00 ₹229.00
  • S4HANA 1909 - Functional Server ₹1,799.00 – ₹4,499.00
  • ECC 6.0 EHP7 - ABAP and BASIS server ₹699.00 – ₹1,799.00
Sign Up to get update of latest Blogs

Find Us

Address
123 Main Street
New York, NY 10001

Hours
Monday–Friday: 9:00AM–5:00PM
Saturday & Sunday: 11:00AM–3:00PM

SAP College is a knowledge portal for all of those who wants to learn SAP. This is a one-stop reference for your entire SAP needs.

sap_college

Few insights about Brexit from the SAP's latest we Few insights about Brexit from the SAP's latest webinar. Brexit is still open with all the possibilities and still everything is clear... as said... they are very close to the deal and yet too far from the deal.

#SAP #ERP #SAPERP #brexit #sapcommunity #s4hana
To read full blog and more like this one visit the To read full blog and more like this one visit the website mentioned in bio.... 
@sap_college 

#sap #saphana #SAPUI5 #saperp #sapcommunity #S4 #s4hana
End-User Manual - Asset Accounting in S4 In this f End-User Manual - Asset Accounting in S4
In this free document, you will get a broader picture of how end-user transactions are changed/affected with New Asset Accounting.
All the information about new transactions and obsolete transactions in S4.

You will learn the newly introduced topics in below areas:

1. Asset Master data
2. Asset Accounting business transactions
3. Month-End closing activities
4. Year-End closing activities
5. Asset Accounting - Information System

Download this free book now from the link in bio

https://lnkd.in/gtvPz-U

#SAP #s4hana #sapcommunity #erp #sapfico #saperp #fico #accounting #assetaccounting #s4 #HANA
Follow SAP College on LinkedIn and stay up to date Follow SAP College on LinkedIn and stay up to date with SAP's new releases. New blog post everyday. eBooks review. Free books. Documents. And many more....

#SAP #S4 #SAPCOMMUNITY #S4HANA #ERP #SAPUI5 #SAPERP
Follow on Instagram
This error message is only visible to WordPress admins

Error: API requests are being delayed for this account. New posts will not be retrieved.

Log in as an administrator and view the Instagram Feed settings page for more details.

Contacts
Website: https://sapcollege.co/
Email: [email protected]
Facebook Page
Terms & Condition

Copyright © 2020 SAP College by Smarksys Technologies. All Rights Reserved.