What is alternative payee or payer in sap fico

Alternative payee is the party to whom you will be making payments on behalf of the original vendor. Alternative payee is a vendor who is recognized as having a right to access to receive some or all the benefits on behalf of the original vendor. Address of the alternative payee will be used for sending reminder. The payment program in sap can make payment to such vendors other that the one to which the invoice was originally posted. 

For example; if you have entered an alternative payee as “liquidator” in the vendor master then while What is alternative payee or payer in sap ficomaking payments for the dues related to the original vendor, sap will make payment to the alternative payee i.e. liquidator. Similarly for customer master, you have to set this types of party from whom you will be receiving payment in place of original customer as alternative payer. Functionality of both alternative payee and payer is same.

You can set alternative payer or payee at both client and company code level. Setting at the company code segment of a vendor or customer master will have priority than the entry at client level. However client level setting can be extended to all the company codes that are created within the client. Sap has provided several options for using alternative payee or payer functionality in a customer or vendor master.

If the alternative payer or payee is an existing customer and already created in your company code then you just required to enter it’s number in the filed of alternative payee or payer in vendor or customer master record. During invoice entry you can chose such alternative payer or payee.

While making payment for vendor, the payment program will access the name and address of alternative payee assigned to the vendor master.

If such alternative payer or payee is not created in sap then while making invoice entry for the party, you can choose the option of individual entries indicator. After this selection, you can enter the individual payer or payee data for customer or vendor master payment.

By selecting the payment data indicator in the additional selection area of a report you can see the alternative payer or payee for their respective customer or vendor. Report RFDKVZ00 for customer and RFKKVZ00 for vendor can be used for the report.

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