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Former Member

Alternative Payer/Payee v/s Head Office Branch Functionality

Dear Experts,

I need to know the difference between (Alternative Payer/Payee) v/s (Head Office Branch) Functionality.

Furthermore, can any one guide me after maintaining Alternative Payer on Customer Master Data where can we give alternative payer account number during Customer Invoice (FB70)?



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    author's profile photo Former Member
    Former Member
    Posted on Jan 08, 2014 at 04:00 AM

    To understand the Head office Branch concept you can refer to the above mention thread.

    I hope this will help!



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    • Former Member Former Member

      Dear Hadi

      While using FB70, you can specify the alternate payee by selecting the check box Individual Payer in the payment tab. There is a pop up requesting for Address and Bank details. But, please note that this check box will appear only if the Individual entries check box is selected in the customer master -> client data -> payment transactions tab -> Alternative payer in the document section.

      I am not sure how it is done for F-28.



  • author's profile photo Former Member
    Former Member
    Posted on Jan 08, 2014 at 05:20 PM

    Can any one please guide me the scenario from customer invoice posting till payment???? Like at the time of invoice (FB70) where to put alternative payer and at the time of payment (F-28) where to put alternative payer???

    Your help would be highly appreciated.



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    • Former Member

      Hi Hadi,

      First setup the customer master data for alternative payer. Go to General setting and then payment transactions tab. Here configure two things.... 1- Mark Checkbox for Individual Entries 2- If you have more than one payer then first create master records for all alternate payers and then come back to above mentioned step, select them in Allowed Payer option. Save the Customer and go to FB70 screen.

      Here enter the main customer under which you have defined the alternate payers. After basic data is entered click on payment tab. Here you will see two options to use. If you want to use one of the payers you have added in original customer master record, then select one of them in "Payer" field through lookup button. Before you can select one you will need to make sure you have setup Automatic Payment program (FBZP) otherwise you will not be allowed to select any from lookup box. Assume that you have done FBZP configuration... then the selected payer will be used in processing automatic payment transactions like on checks, bank transfers and so on.

      If you want a new payee which is not added in master record then you can click on checkbox named "Individual Payee". A window will popup for information of this new payee. Plug in the information and here you go!

      F-28 would not be different than usual. Keep in mind that using the alternative payer or payee does not waive the liability from original customer or vendor. Accounts are settled in their name. Alternative payers or payees are only used on payment medium like cheques and so on. So again F-28 will be processed as usual and you do not need to select the alternative payee or payer there. Process the open items and clear the receivables...

      Hope this clarifies...



  • Posted on Jan 09, 2014 at 07:05 AM

    Hello Hadi,

    I will try to make understand this concept with an example.

    Alternative Payee/Payer:- Co. A need to pay money to X. X need to pay the same amount to Y. Now X is directed to Co. A that instead of paying the money to me pls pay the same to Y on behalf of me. Now Co. A is paying the same to Y on behalf of X. Now here Co. A is called as Alternative Payee ( who is making the payment in place of original payee)

    Here instead of moving the money from Co A to X and then X to Y directly done the payment i.e. Co. A to Y.

    Original Payer - Alternative Payer ( to Y)

    X Co. A

    Original Payee - Alternative Payee ( to Co. A)
    X Y

    Head Office/Branch:- Vendor Co. X is having 2 branches in two different locations ( like S & T) and place the orders individually to different suppliers and that supplier ultimately booked the order on this vendor i.e on Co.X only but not on branches.

    Here Co X - Head office; S & T - Branches

    At the time of the creation of the customer master, if you just tick the "Individual Entries" in "Alternative payer in document", then at the time of making entry for the customer, say in FB70 in the "Payments tab, there will apprear a new field "Individual Payee". If we tick that, it will allow us to enter a name and address that is different from the customer master. So for only this document, the customer details would be different. In our above example, if X wants to get a particular bill in the name sayY then we can do this with "Individual payee".

    Similarly the "Alternative payee in document" also allows to give some other "allowed payee" ,If we click that tab and enter some other customer code, then at the time of entry in FB70, one more field will appear called "Payer", where if we want we can select that alternative customer code for that transaction.

    I hope it helps!

    Thanks & Regards,

    Lakshmi S

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  • Posted on Jan 08, 2014 at 06:41 AM

    Hi fico,

    A customer who pays on behalf of another customer is known as an ‘Alternate Payee’ (or

    Alternate Payer). Though the alternate payee pays on behalf of another, the system maintains

    all the transaction details in the account of the original customer. Designating ‘alternate payee’

    does not absolve the customer of his/her obligation for payment.

    The ‘alternate payee’ can be maintained in Client-specific data or in the Company Code area.

    When maintained in the Company Code area you can use that payer only in that Company Code;

    if defined at the Client level you can use it across all Company Codes.

    There are three ways to ‘select’ the alternate payee when an invoice is processed:

    1. The alternate payee (say, 1000) entered in the customer master record is the one

    selected by the system as the default.

    2. When there is more than one alternate payer (say, 1000, 1900, 2100, etc.) defined for a

    single customer in the master record (you will do this by clicking on the ‘allowed payer’

    button and create more than one payer), you may select a payer (say, 2100) (other than

    the default, 1000) while processing the invoice. Now the system will ignore the alternate

    payer (1000) coming from the master record.

    3. If you have put a check mark in the ‘individual entries’ check box in the ‘alternate payer in

    document’ section in the customer master record, then this will allow you to propose a new

    alternate payer, say, 3000 (other than those already defined in the system). Now, after

    defining this alternate payer you can use it to process the invoice. In this case, the

    alternate payer (3000) takes precedence over the payers (1000 and 2100) in step 1 and 2


    G Rajendhar.

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