I need to understand the concept how bank transfer is being made during payroll.
You can transfer the Pay amount in to corresponding bank account by using the DME prog. You need to set the settings in the Bank Details Infotype IT 0009, System will take in to account based on that setting, whether Bank transfer or Cheque or Cash.
RPCDTAx0 - Preliminary Prog for DME
RPCEDTx0 - DME prog.
You need to run these programs, to do the Bank Transfer.
Vendor Account, is nothing but the third party remittance, to whom you have to pay, we need to assign the WT to Vendor Account through Symbolic Accounts.
The bank transfer is done when the employee's salary is directly credited in the bank account.
Then the necessary details is filled in the infotype ( 0009 ) its the bank details infotype, here you will give the bank key, bank account number and the payment method ( T ) tht is Bank transfer.