Vendor Operation 
Use
Vendor operation functions enable you to arrange special financing for your customers with one or more banks, passing on favorable interest rates and banks' days net to your customers. You receive immediate payment from the bank, but you also function as the guarantor in the operation, should your customer default on their payment to the bank.
Both you and the bank charge the customer interest for this procedure. The bank pays you the cost of the goods plus your charge, and the customer pays the bank the cost of the goods plus the bank's charge (the difference between the two amounts is referred to in the system as equalization). You only pay the taxes due (ICMS, IPI and COFINS) on the amount you receive from the bank, and not on the bank's interest/finance charge.
Prerequisites
You have already established a vendor operation contract with your customer, and have entered the necessary data in your customer's master record.
Before you can use the vendor operation functions, you also need to make a number of Customizing settings.
Activities
The vendor operation procedure involves the following steps (for an overview of the business process itself, see Payment Scenarios):
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1. Create an invoice for your customer, using special payment method V.
2. Create a vendor operation document using the Vendor Operation report, based on the selected bank's interest rate.
3. Execute a payment run for these documents.
To restrict the payment to vendor operation documents only, you need to specify your special G/L indicator on the Free selection tab. To do so, choose F4 for the Field name field, and specify that you want to find a field for a document. In the dialog box, select Special G/L ind. (field name BSEG-UMSKZ). Next, enter your special G/L indicator in the Values field.
4. Create a DME file and boletos, where required, using the print program for vendor operation (RFFOBR_V).
You can trigger the automatic creation of the DME file and boletos from the payment run (step 4), by entering program RFFOBR_V on the Printout/data medium tab.