Alternative Payee Options for Accounts Payable

Available options

There are 3 different options for Alternative Payee with various functionalities and setup:

1 - Alternative payee

2 - Alternative payee in document

3 - Permitted payee

Option #1 - Alternative Payee

If the Alternative payee is populated in the Vendor master record, all payments to the vendor will be issued to the alternative payee address.

It is a one-to-one relationship only.i.e. 20005 Priebe Electronics in Woodinville, WA has an Alternative payee of 40893 in Seattle, WA.

Option #1 - Alternative Payee

Setup for the alternative payee is done in the Vendor Master record.

Company code-specific payee has priority!!!

Option #1 - Alternative PayeeWhen making a payment (FB60 or MIRO) you will NOT see

an alternative payee field.

Option #1 - Alternative PayeeIn FBL1N the Payee/er field is NOT populated.

Option #2 - Alternative Payee in Document

If the Individual spec. field is checked in the vendor master an alternative payee can be manually entered during document entry time.

This is a one-to-many relationship.

A reason to use this setup would include one-time vendors.

Option #2 - Alternative Payee in Document

Setup for the alternative payee in document is done in the Vendor Master record.

Option #2 - Alternative Payee in Document

When making a payment (FB60 or MIRO) on the Payment tab you will now see a check box field for Individual payee. Once checked an address field appears.

Option #2 - Alternative Payee in Document

To see the Alternative Payee address after posting go to FBL1N, find document, from the menu bar Extras Alternative Payee.

Option #3 - Permitted Payee

If the Permitted payee(s) is populated in the Vendor master record, during the document entry process the allowed payees are listed and the specific payee can be selected.

It is a one-to-many relationship only.

Option #3 - Permitted Payee

Setup for the permitted payee is done in the Vendor Master record.

Company code-specific payee has priority!!!

Option #3 - Permitted PayeeWhen making a payment (FB60) on the Payment tab you do

a drop down on the Payee field and you will see the permitted payees already assigned to the vendor.

Option #3 - Permitted PayeeWhen making a payment (MIRO) on the Payment tab you do

a drop down on the Payee field and you will see the permitted payees already assigned to the vendor.

Option #3 - Permitted PayeeThe Payee/er field in FBL1N is now populated with the

appropriate payee.

Quick Notes

Currently we have 1,069 Alternative Payees (Company Code level)

No vendors are setup for Alternative Payee in document.

No vendors are setup for Permitted Payee.