Hi,
There are 3 available options in SAP 4.0 onwards
-Alternative payee
-Alternative payee in document
-Permitted payee
Alternate Payee: The Alternative payee field is available on the vendor master data screen on two different screens: the general payment transaction screen and the company code specific payment screen of the vendor. If an alternative payee is entered, all payments to a vendor are issued to the alternative payee. If the alternative payee is filled in both screens, general payment transaction and company code-specific payment transaction screen the company code-specific payee has priority. Upon invoice entry (FB60), the user cannot see whether an alternative payee is assigned to the vendor. Since the vendor address on the screen does not change, the user has to go to the vendor master data and verify that the correct alternative payee is assigned to the vendor. Otherwise, a payment can be issued to the wrong payee address.
Alternative Payee in Document: This option is similar to the one-time vendor invoice and payment functionality in AP. Here, however, the user has the option to enter an alternate address or bank information into the invoice, whereas for one-time vendors, this information must always be filled in. To allow Alternative payee in document information to be entered, the Individual spec. box must be checked in the payment transaction screen of the vendor master data. Once the Alternative payee in document information is allowed for a vendor, the Individual payee checkbox is available during invoice entry on the Payment tab of the invoice. If you check the Individual payee box, a new screen pops up that allows you to enter alternative address or bank information specific to this invoice.
Permitted Payee: This option allows the assignment of multiple permitted payees to the same vendor. First, permitted payees need to be assigned in the vendor master data and then chosen during invoice entry. Permitted payees can be assigned in the general payment transaction screen in the vendor master data, and are therefore valid for all company codes. Once you click on the Permitted payee button, a second screen appears that allows multiple permitted payees to be assigned to the vendor. Once the Alternative payee in document information is allowed for a vendor, the Individual payee checkbox is available during invoice entry on the Payment tab of the invoice. The user must choose the correct payee address manually from the permitted payee list. Therefore, issuance of payments to the wrong payee address is avoided far more easily than with the alternative payee option.
Usually recommend options is using payee in document and permitted payees, because the users have to enter or choose the payees deliberately.
Regards,
Krishna Kishore
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.