Alternative Payee Options for
Accounts Payable
Available options
There are 3 different options for Alternative
Payee with various functionalities and
setup:
1 - Alternative payee
2 - Alternative payee in document
3 - Permitted payee
Option #1 - Alternative Payee
If the Alternative payee is populated in the Vendor
master record, all payments to the vendor will be
issued to the alternative payee address.
It is a one-to-one relationship only.
i.e. 20005 Priebe Electronics in Woodinville, WA
has an Alternative payee of 40893 in Seattle,
WA.
Option #1 - Alternative Payee
Setup for the alternative payee is done in
the Vendor Master record.
Company code-specific payee has priority!!!
Option #1 - Alternative Payee
When making a payment (FB60 or MIRO) you will NOT see
an alternative payee field.
Option #1 - Alternative Payee
In FBL1N the Payee/er field is NOT populated.
Option #2 - Alternative Payee in
Document
If the Individual spec. field is checked in the vendor
master an alternative payee can be manually
entered during document entry time.
This is a one-to-many relationship.
A reason to use this setup would include one-time
vendors.
Option #2 - Alternative Payee in
Document
Setup for the alternative payee in document
is done in the Vendor Master record.
Option #2 - Alternative Payee in
Document
When making a payment (FB60 or MIRO) on the Payment
tab you will now see a check box field for Individual
payee. Once checked an address field appears.
Option #2 - Alternative Payee in
Document
To see the Alternative Payee address after posting go to
FBL1N, find document, from the menu bar Extras 
Alternative Payee.
Option #3 - Permitted Payee
If the Permitted payee(s) is populated in the
Vendor master record, during the document
entry process the allowed payees are listed and
the specific payee can be selected.
It is a one-to-many relationship only.
Option #3 - Permitted Payee
Setup for the permitted payee is done in the
Vendor Master record.
Company code-specific payee has priority!!!
Option #3 - Permitted Payee
When making a payment (FB60) on the Payment tab you
do a drop down on the Payee field and you will see the
permitted payees already assigned to the vendor.
Option #3 - Permitted Payee
When making a payment (MIRO) on the Payment tab you
do a drop down on the Payee field and you will see the
permitted payees already assigned to the vendor.
Option #3 - Permitted Payee
The Payee/er field in FBL1N is now populated with the
appropriate payee.
Quick Notes
Currently we have 1,069 Alternative Payees (Company
Code level)
No vendors are setup for Alternative Payee in document.
No vendors are setup for Permitted Payee.