Note to Payee Functionality

Note to Payee is a functionality available in SAP DME to meet legal / bank requirements of additional details along with payment file.

Also, many times, note to payee information is required by bank/supplier, along with DME XML/FLAT file.

Basically, note to payee is information of paid line items for each vendor/business partner. Note to payee can be any information about payment as per the requirement of bank.

Below are few e.g.

  • Legally required information of each payment
  • Official document number, which is being paid
  • Common reference number between business partner

So note to payee is just additional information you have to print in output file. Just like we print other payment related details. Hence it is possible to do same kind of mapping in DMEE tcode itself and print these details. But SAP has provided separate function of Note to Payee to have greater flexibility.

Note: As a prerequisite to have fair understanding of this blog post, one should be familiar with DME functionality and DME tree structure. If you are new with DME then you can refer this eBook to learn DME.

Config setup required for Note to Payee:

Below transaction codes need to configure for Note to payee functionality:

  • Payment medium format (OBPM1)
  • OBPM2
  • FBZP
  • DMEE
  1. Payment medium format (OBPM1)

Select the concern payment format and go to tab ‘Text fields for reference information’

Here enter the information like type, field length, no of fields.

Field length will depend on requirement, where as No. of fields will depend on payment file structure. Let’s say if you have configured DME tree like separate line for each invoice then No. of fields 1 is sufficient.

But if you have configured DME tree for separate line for each vendor (multiple invoices) then No of fields should maximum like 99.

Also Read: Functioning of CO-PA in MTO Scenario
  1. Note to Payee (OBPM2)

From the same screen you can either click on Note to Payee button or go to transaction OBPM2

Create note to payee nodeCreate Note to Payee node

Then select option – Note to payee layout using function module and enter the function module name

Before this step as prerequisite this function module should be available/created. When you will ask ABAPer to develop such function module below are the things you should ask for apart from field and data logic:

  1. This function module should be called at the time of payment run
  2. Whenever Create payment medium checkbox is ticked
  3. Data of Note to Payee should be stored in table DFPAYHT

DFPAYHT table should store values as per the structure of Note to payee


Note: Reference FM for creating ZFM is – FM FI_PAYMEDIUM_SAMPLE_DETAILS

Well, if you want to go for customizing option, then it includes below steps:

Go to ‘Default Note to Payee’ section in OBPM2 after ticking ‘Note to payee using customizing’ option

Here in this tab we have option to play with SAPScript data. As you can see in notification type we can select the behaviour of output for Note to payee text field values. Values can be taken from three structures FPAYP, FPAYHP & FPAYHX. If you are confused about variables or other signs then just click F4 in Note to Payee text field and just select required fields.

You can also check the preview by selecting preview button for your payment medium format

These fields will be updated in table DFPAYHT.

  • Maintain payment program FBZP

Select payment method in country

Select Country and payment method and go to tab Note to payee origin

Here in note to payee field enter the note to payee name which we created in OBPM2 transaction. This will help trigger FM and correct note to payee.

After this go to DMEE tree

Here we have to modify DMEE Tree and link note to payee in DME.

Read eBook: Controlling profitability Analysis - Comprehensive coverage of COPA Module

Create a node for Note to Payee where note to payee details should appear. This node is based on exit function. We need new function module for this node. Remember the function module we created and assigned in OBPM2 settings, that FM updates table DFPAYHT right. Here we need FM that can pull the information updated in DFPAYHT.

If you remember previous screenshot of DFPAYHT table, there all the fields of note to payee is stored in separate line. So this FM should concatenate these fields into one single line.

Note: Reference FM to create ZFM is – DMEE_EXIT_TEMPLATE_ABA

Alternate to this option, if you don’t want to use exit function module, is to call structure DMEE_PAYD – TEXT

Below are some important points to note in Note to payee functionality:

  • Most of the times to match the requirement, standard customizing is not enough so in that case custom FM is much better and useful way to configure Note to Payee
  • Note to Payee is like free form text, it changes from bank to bank, organization to organization. In some cases, it is mandatory to print note to payee info in DME file. In some cases, it is not even required

This is simpler than how it looks; you just need to try this once. If you want to know more about DME then consider reading this eBook.

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SAP College November 5, 2021 0 Comments

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

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:


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.

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.

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.

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

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SAP College August 24, 2021 0 Comments

What is SAP Co-Pilot?

Imagine you are sitting on your couch, scrolling through Instagram, it’s 21:00 o’clock, you are done with dinner and planning to go to bed… almost all of the items in your to do list is checked…

And suddenly you realize that you forgot to punch a Purchase order against the purchase requisition raised by IT department. The requirement is for procurement of headsets and it is urgent, the PO should have punched today itself. So you decide to create purchase order…

Now imagine the pain of getting up and reaching to your home office desk/laptop, logging in, connecting through all of VPN and then follow all of the necessary steps to create purchase order without getting distracted by the emails or the messages you may have received.

Now, instead of doing all of this, what if someone do it for you. Like you ask google assistance/Siri/Alexa to set an alarm for you, like you ask them to call xyz person. What if you get a similar bot and you ask that bot to ‘show me all of the purchase requisition created for headset requirement’ and the bot replies you with the appropriate requisition number and a soft copy of that requisition on your smartphone. You check the details of the requisition and then you ask bot to create a purchase order for this xyz requisition… and within few seconds the bot replies you with the created purchase order and soft copy of it….

Wouldn’t it be amazing? If you think it is, then it’s here the bot name is SAP Co-pilot and it can do many more things than what we imagined in above example. Explore more about co-pilot in below video..

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SAP College June 11, 2021 0 Comments

What is Rise with SAP?

Basically it’s an offer, SAP has launched after pandemic. SAP has offered a package of components along with S4HANA.

Rise with SAP is a movement where SAP wants to help customers to move on to the latest technologies with the most efficient and faster way. SAP has divided customers into three categories:

  1. ECC customers
  2. S4HANA customers
  3. New customers

Now there are just so many things out there for new customers as well as ECC customers to choose from and also there are S4HANA customers but all are on different level, some have opted in 2015 some have in 2018 and all of the customers are wondering what should be the next step… this is where Rise with SAP comes into the picture

SAP wants to build an Intelligent enterprise to run and streamline complex innovative scenarios. To help businesses streamline their processes differently with the help of Intelligent suite (i.e. S4HANA) and Industry cloud. It helps businesses to not only became profitable but to be sustainable in long run.

Below slide provides an idea about how SAP will help implementing the Intelligent enterprise:

  1. Help businesses to Redesign business process
  2. Provide necessary Tools & services for smooth migration
  3. Provide Infrastructure, Platforms, Required Application and Network

What SAP is offering in Rise with SAP offer:

Packages included in this offer and how customers can buy this:

S4HANA private cloud edition:

for more information about Rise with SAP watch this webinar.

If you have any suggestions or questions do let us know in the comment section or you can also write us directly. 

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Till then you can have look at our ebooks.

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SAP College February 9, 2021 0 Comments

GST India – E-Invoicing

1.     Introduction

GST E-invoice is introduced to reduce the evasion of GST. It is an electronic invoice generated by supplier on the government portal. It is mandatory to issue e-invoice for Business to Business (B2B) transactions provided that the supplier has crossed the threshold limit of 500 crore turnover in previous financial year.

E-invoice solution provided by SAP:

For more details refer OSS – 2884058 – SAP solution for eInvoice/IRN India

SAP has provided two solutions for eInvoicing

  • Automated Solution

This is a solution developed by SAP which will provide direct integration between the SAP and the eInvoicing (IRN) via certifiedGSPs using the SAP Cloud Integration Platform. 

GSP:  GST Suvidha Provider (GSP) is considered as an enabler or authorised intermediary for businesses to access GST portal services.

In automated solution user has to upload the invoices from SAP, then in the backend it will be send to IRP portal via GSP and generate an 64 digit IRN (Invoice reference number) along with signed QR code; returned it back to SAP and assigned to the invoice or stored in the database.

  • Manual Solution:

SAP manual process will read the response file and store the information of IRN, QR code & digital signature in the standard table and it will link the original invoice with IRN along with the current status in the table. The preparation of a standardized format (JSON request file) needs to be generated offline by the customer.


In eInvoicing solution SAP has introduced the cockpit to manage the all activities related to edocument. How to use it and what we can do with the cockpit we will see in below part:

Execute transaction code EDOC_COCKPIT

Below screen will be prompted:


Default variant is executed in the background after executing the cockpit

To change the variant value click on Change button:

We can use above parameters to filter the edocument

In the cockpit there are only two status of the document on broad level


In process


Once the status is completed, there will no further processing can be done on the document.

To generate an edocument and get IRN number select the document:

And click on the submit

That’s it, within couple of seconds system will reach to the IRP portal and generate an IRN number and get back to the SAP

You can notice even after generating an edocument status is still yellow (in process)

Scroll to the extreme right to see the Invoice Reference Number

The highlighted number is the 64 digit alpha numeric IRN

Cancellation of IRN

Cancellation of E-document is only possible if we are cancelling it before 24 hours and the invoice is not finalize in the SAP

Select the E-document and click on Cancel eDocument

Enter the cancellation reason code from below available options:

  • Duplicate
  • Data Entry Mistake

Click on save

And the edocument does not get cancelled, to check the error select the document and click on ‘goto’ button

Click on application log

Errors and checks

Duplicate IRN:

IRN will not be generated for invoices with identical key parameters (Eg: Supplier GSTIN, Invoice Number/ODN, Document type, Financial Period, etc.). In case there are invoices generated with identical ODN, assign a separate number range in the view EDOINEWBCONFIGV.

RCM cases:

IRN is only required for B2B RCM invoices from the supplier perspective and not from the buyer and receiver perspective as this is not a legal requirement and there is no API available for the same in Govt. portal.


After finalizing, no action can be performed on the e-Document. The status color will be green once finalizing the e-Document is done.


According to govt, IRN cancellation can only happen within 24 hours of its generation. Any cancellation after 24hrs could not be possible on IRN, however one can manually cancel the same on the GST portal before filing the returns.

If the source document needs to be canceled in SAP post 24 hours of IRN generation:

  1. Perform the ‘Cancel eDocument’ action under ‘More’ in EDOC_COCKPIT and it should fail with the error “Error Code 2270: The allowed cancellation time limit is crossed, you cannot cancel the IRN.”
  2. Use the ‘Allow Cancellation’ action under ‘More’ in EDOC_COCKPIT to enable the cancellation of the source document. The status will be changed to ‘ALLOW_CANCEL’ to allow source document cancellation.

Note: This does not have any impact on IRP portal data and only allows to cancel source document in the SAP system. After canceling the source document, ensure to cancel the outward liability while filing GSTR1 returns.

Below customer categories requires to generate edocument.

GSTIN / UIN Status

Tax Payer TypeGSTN StatusCustomer Category
Tax DeductorActiveB2G
SEZ UnitActiveSEZ
SEZ DeveloperActiveSEZ

This blog will be update time to time as this is new thing in India and government seems to be serious with the edocument concept looks like we will see more changes in near future.

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SAP College November 28, 2020 0 Comments