SAP MM Invoice Verification : Alternate Payee

There are 3 available options in SAP

-Alternative payee
-Alternative payee in document
-Permitted payee


Alternate Payee:

The Alternative payee field is available on the vendor master data screen on  two different screens: the general payment transaction screen and the company code specific  payment screen of the vendor. If an alternative payee is entered, all payments to a vendor are issued to the alternative payee. If the alternative payee is filled in both screens, general payment transaction and company code-specific payment transaction screen the company code-specific payee has priority.

Alternative Payee in Document: 

This option is similar to the one-time vendor invoice and  payment functionality in AP. Here, however, the user has the option to enter an alternate address  or bank information into the invoice, whereas for one-time vendors, this information must  always be filled in. To allow Alternative payee in document information to be entered, the Individual spec. box must be checked in the payment transaction screen of the vendor master
data. Once the Alternative payee in document information is allowed for a vendor, the Individual
payee check box is available during invoice entry on the Payment tab of the invoice. If you check
the Individual payee box, a new screen pops up that allows you to enter alternative address or bank information specific to this invoice.

Permitted Payee: 

This option allows the assignment of multiple permitted payees to the same  vendor. First, permitted payees need to be assigned in the vendor master data and then chosen during invoice entry. Permitted payees can be assigned in the general payment transaction screen in the vendor master data, and are therefore valid for all company codes. Once you click on the Permitted payee button, a second screen appears that allows multiple permitted payees to be assigned to the vendor. Once the Alternative payee in document information is allowed for a vendor, the Individual payee checkbox is available during invoice entry on the Payment tab of the invoice. The user must choose the correct payee address manually from the permitted payee list. Therefore, issuance of payments to the wrong payee address is avoided far more easily than with the alternative payee option.