When the vendor payment are to be grouped in a specific way as per business requirement then the Grouping Key functionality can be used.
For example: Same vendor supply stationery to different unit. Payment has to be made unit wise.
In SAP each business unit has been identified as a Business Area.
Grouping Key is defined in OBAP
IMG menu path SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment Method/Bank Selection for Payment Program > Define Payment Groupings.
Maximum of three fields combination can be given in a grouping key to group various open items in a payment.
A field name from the database table "BSID" must be used for customers and a
field name from table "BSIK" must be used for vendors.
This Grouping Key has to be maintained in Vendor master.
When F110 is run then automatically separate payment would be done for each Business Area.
