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Author's profile photo Nimish Agarwal

Third Party Payments For A Particular Or Multiple Invoices – Without Creating Payee Master Record

Hello and welcome to my blog post on Alternative Payee Update In Invoice Document. I will be highlighting the prerequisites and process flow of this functionality in this blog.

 

Introduction:-

Updating Alternative Payee in Invoice Document –> Check to be printed with ‘Third Party’ vendor using Transaction Code F110 or F-58. It is a normal business process where suppliers do reach out to their clients at 11th hour to allow payments to ‘Third Party’ for their outstanding invoices.

Below functionality can be used where in the last minute a Third Party vendor need not required to be created as Business Partner (master data). Simply updating the invoice document with alternative payee, address, bank details, can work etc.

 

Prerequisite:-

The field ‘Payee in Document’ should be checked in Business Partner master record (T.Code BP) on the ‘Vendor: General Data’ tab so that an alternative payee can be entered during invoice posting or on the change document screen

Business Partner master record:

Payee%20In%20Document

 

Invoice Entry – FB60:-

The above check box will only activate the field ‘Individual Payee’ at the time of invoice entry or invoice change screen.

 

When ‘Individual payee’ check box is selected a new screen opens up where an alternative payee details can be filled-in to whom the payment has to go through

All the fields relevant from payment perspective are available on the screen and can be filled-in as per the requirement of the payment method, i.e, if it is a bank transfer than banking information will be required.

As we are executing check payments, so updating the required information will suffice.

 

Once Payee details are updated and document is posted, Payee name can be seen in the ‘Individ. Set’ field as highlighted below:-

 

Payee details can also be updated at later point of time after the document is posted using Transaction FB02.

 

Document Update table:-

Once Alternative Payee is updated, the same will be reflected in table BSEC (One-Time Account Data Document Segment)

 

Automatic Payment Transactions:-

Now, execute Automatic Payment Run – F110

Enter the Parameters:-

 

Run the Proposal:-

 

Check the Proposal Log:-

It can be seen that Alternative Payee is updated in the ‘Name of the payee’ field.

 

Run the Payment Run:-

 

Schedule the ‘Print-out’:-

 

Check the job log for errors if any:-

 

Check the spool for check printed in SP01:- (Alternative Payee is printed on the check)

 

 

Check Register (FCHN) also gets updated with Alternative Payee for that particular payment document number:-

 

Conclusion:-

I hope, my blog provides solution and guidance to the subjected matter and wish that my colleague consultants find it useful in their support and development activities

 

Best Regards,

Nimish Agarwal

 

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      14 Comments
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      Author's profile photo Pankaj Patil
      Pankaj Patil

      Nice blog Nimish, this is good information for the alternative payee payments.

      Author's profile photo Nimish Agarwal
      Nimish Agarwal
      Blog Post Author

      Thanks a lot Pankaj..!!

      Author's profile photo Vinaya Bagdiya
      Vinaya Bagdiya

      very nicely articulated.

      Author's profile photo Shiva Prasad Ellendula
      Shiva Prasad Ellendula

      Dear Nimish,

      Very good information and it is useful in several projects. Thank you for sharing.

       

      Regards,

      SHIVA.

      Author's profile photo Nimish Agarwal
      Nimish Agarwal
      Blog Post Author

      Thanks Shiva!!

      Author's profile photo Darshana Daga
      Darshana Daga

      Hi Nimish,

      Its useful information, thank you for sharing.

      Author's profile photo Nimish Agarwal
      Nimish Agarwal
      Blog Post Author

      Thanks a lot Darshana!!

      Author's profile photo Saurabh Goel
      Saurabh Goel

      Nimish - very well articulated!

      Such nifty tips & tricks go a long way in getting the user community to feel comfortable using the platform.

      Thanks a lot for sharing this.

      Regards, Saurabh

      Author's profile photo Nimish Agarwal
      Nimish Agarwal
      Blog Post Author

      Thanks Saurabh.

      Author's profile photo Zeeshan Haryani
      Zeeshan Haryani

      good, from audit point of view, it is not a good practice, as any user can put his name and get the cheque in his name.

      Author's profile photo Nimish Agarwal
      Nimish Agarwal
      Blog Post Author

      Hi Zeeshan,

      This is a normal scenario where some vendors do ask for payments to alternate payee during the last minute of payments. SAP has given control for this - one at the master data level and second the alternate payee can be traced from the invoice document - as who have updated it. Yeah I do understand that this at times risky when payment amount is high - simultaneously a workflow and authorization matrix can be enabled to approve the invoice when any change happens or a new invoice is posted.

      Regards,

      Nimish Agarwal

       

       

      Author's profile photo Gautam Ankam
      Gautam Ankam

      Hi Nimish,

      Good info!!.

       

      A couple of questions:

      • Should BP functionality be enabled for this?
      • Is this version specific? ECC vs S4HANA?
      • This is primarily used in "one off" payment scenarios but not for large volumes of invoices. Would that be right?

      Again, Thank you for this good info.

      Author's profile photo Nimish Agarwal
      Nimish Agarwal
      Blog Post Author

      Hi Gautam,

      * In S4 - BP is by default to be used, in ECC - no need to enable BP functionality

      * No, this is not version specific - available in ECC as well as S4

      * Yes, this is 'one-off' scenario where users not having access to master data creation can go and update alternate payee in the change master record screen. For cases where volume is high, would suggest to use alternate payee option in the BP master - available at Client as well as Company Code level - suitable per customer's requirement.

      Regards,
      Nimish Agarwal

      Author's profile photo Dheeraj R
      Dheeraj R

      Hi Nimish,

      Thanks for the blog. I have a question:

      When ‘Individual payee’ check box is selected a new screen opens up where an alternative payee details can be filled-in to whom the payment has to go through

      Should we manually enter the address or can it be automated?

      Thanks for your reply.