Under ERP Financials, AP-AR
Alternate Payee is a concept in SAP in Accounts Payable and Account Recievables wherein if the payments are not to be made directly to the party to whom the amount is owed but on a different name.
For example, when making payments one does not need the vendor name but a different name to be printed on the cheque.
The alternate payee field has to be updated in the corresponding master data. However, there are two areas where it can be updated (optionally) -
- Company code data
- General Data
If both fields are filled, the company code specification has priority.
Master Data Maintenance
In the master data,
- Under the general data, in the Payment Transaction tab, mention a vendor code as alternate payee
- Under the Company Code Data, in the payment transactions Accounting tab, in the Automatic Payment Transactions tab, Alternat Payee field has to be updated.
While posting the transaction data i.e., the invoices, in the payment tab, Individual payee checkbox is seen at the bottom. Checking this box will open a pop-up window wherein an alternate payee name and other bank data can be entered.
When a payment run is made, Cheques are drawn in the name of the alternate payee instead of the vendor for whom invoice is raised.
In the master data, under the General Data section, under payment transactions tab, select option for Individual Spec.
While posting invoice, under the Payment Tab, upon ticking the Individual Payee check box, a pop up will appear. Fill the information and post. While doing automatic payment run, cheque is drawn in the name of the alternate payee mentioned in the invoice.