Hi Raymond and Jignesh,
I would say the whole solution is usually context-specific, meaning both depends on Customer preferences - how they want to run the Payment process, also on what their financial partners - banks are offering in terms of payment execution.
e.g. one of scenarios could be that your bank offers both Bulk (payment type #1) and Bulk Urgent payments (payment type #2). then, the next question is, how you as a Company want to structure the Payment process.
E.g. do you differentiate on the base of specific Vendors, like Vendor group A - for those you expect to use only Payment type #1 and Vendor group B - Payment type #2 always or mixture of both?
If it is always a strict rule, that e.g. Vendor group A is paid only over Payment type #1, then you specify that on Vendor master data and whenever FI document is created, these characteristics (e.g. Payment method) are defaulted. Further, that specific payment method can be assigned to dedicated Payment medium for payment method #1.
If you have mixture, you can still override the default value either at the moment, when FI document is created or when a payment run (SAP trans. F110) is executed. depending on complexity of your solution, you might use either another Payment method or e.g. Payment method supplement to differentiate between Payment type #1 and #2 - please consider your Master data maintenance efforts.
and off course, your bank should clearly instruct you how you should deliver Bulk or Bulk Urgent payments - what formats are acceptable and what specific fields indicates which of 2 options you are using.
Kind regards,
Renatas