Alternative Payee at Contract Account level

[prchoudhary]

Hello Experts,

I maintained the alternative payee at the contract account level under payments/taxes tab for outgoing payment method as refunds. Now when I executed payment run and create the outgoing payment check, the refund check is still getting issued in the name of original BP and not in name of alternative payee BP. As per sap help for the alternative payee field, "if an automatic payment procedure (e.g. check, transfer) has been arranged for an account, you can enter an alternative payee, provided payment is not to be made to the contract person, but to an account or address of a third party." Now the refund document which got posted as a result of payment run (FPY1) has been posted at the CA level so the payment was not made to the contract person (original BP).

I would also like to mention that when I maintained the alternative payee BP number at the document level under payments data tab of the document, the outgoing refund check got created in name of alternative payee BP.

My question is what I need to do so that the outgoing check gets issued in name of alternative payee BP when the same is maintained at the CA level?

Thanking you all in anticipation.

Regards,

Preeti

[AmlanBanerjee · Accepted solution]

Hi Preeti,

The entries at the document level always supersedes the entries at the account level.

So when you are entering the alternate payee field only at the account level, leaving the alternate payee field blank at the document level, SAP is behaving in a way that refund item is for the original BP as the alternate payee field is not updated at the line item level.

However, when you are updating the alternate payee field at the line item level, SAP is able to find that at the line item level, and generating the check against the alternate BP rather than original BP.

In a nutshell, alternate payee field at the contract account level will only take effect, if you have updated the outgoing payment method only at the account level, leaving the payment method at the document level blank.

If you are assigning the payment method at the line item level, then alternate payee field at the account level doesn't have any significance.

Hope it helps...

Thanks,

Amlan

[prchoudhary]

Thanks Amlan for the quick response. It was definitely helpful. In our system, refund workflow is activated so I need to update the payment method at the line item level. This means, I need to update the alternative payee BP number at the item level only if I want to generate check in alternative payee name.

thanks again.

Regards,

Preeti

[AmlanBanerjee]

Yes that's correct.

Other wise if you leave the alternate payee field at the line item level blank, system will consider that refund is for the Original BP and will issue the check against the original BP rather than the alternate BP, even if the alternate payee field is updated at the account level.

Thanks,

Amlan

[prchoudhary]

Thanks Amlan!