Alternative Payees
An alternative payee is a party that receives payment for an invoice, but this party is not the same the supplier of the goods and services.
The Invoice Vendor Identification functionality includes the setting to specify an alternative payee.
For example, if an invoice is processed for vendor 1000 and an alternative payee of 2000 is specified, then the invoice is created in the downstream ERP system against vendor 1000. However, when the payment run is executed, vendor 2000 is the recipient of the funds.
In an ERP system, the relationship between a vendor and one or more alternative payees is tightly defined in the vendor master data. At the time of invoice entry, a user may only specify an approved alternative payee that is set up against the invoice vendor. Possible alternate payees for a vendor are known as permitted payees. Alternate payees exist as vendor records in the vendor master data in their own right. However, they are typically blocked for direct posting and may have a different account group. The alternate payee field and associated functionality can be activated per profile ID.
An alternate payee is activated in either Field Settings or in Vendor Settings.
If you configure an alternate payee in , the Alternate Payee field is activated in the project. This field is included as a supplementary field to the vendor ID on the Validation activity page. However, the field only functions in relation to the settings in , effectively becoming an extra free text field that can be used as necessary. The AlternatePayeeValidate user exit is also available for any custom validation logic.
If you configure an alternate payee in the as well as the , then the Alternate Payee field is available and its standard functionality is activated. Activating an alternate payee in the without configuring an alternate payee in the has no effect. This is because the alternate payee is a supplementary field to the vendor ID. The Vendor ID must also be an active field in the profile.