Third Party Payments For A Particular Or

Multiple Invoices – Without Creating Payee

Master Record
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:–

 

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:-