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Receiver Agreement Question

I am trying to add a receiver agreement to my IDOC to File scenario,i have gone through the blog which explains this scenario and i still have one question.

Under the subsection of sender and receiver in receiver agreement.There is a field called Service,,What does it actually mean? Because when i click on the Question mark that is there on the right a window pops up and shows me all the business systems that i have,So does service mean business system in XI? and what if i want to send the outbound file to my localsytem? what should be my target directory in File Adapter?should it be localhost/zzz? So if i can send the file to my local system i.e. my laptop should i still have business system?

And should the SERVICE field be treated like the same in receiver determination,Interface determination etc?? i.e like a business system?

Thank you

Venkat

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