What is 'payee on behalf of' in SAP AP-BP - FDN-Business Partner Data Management?

payee on behalf of - Overview

• Component: AP-BP

• Component Name: FDN-Business Partner Data Management

• Description: An organization or person who can receive payments on behalf of other suppliers.

payee on behalf of - Details

• 
  Key Concepts: 
  Payee on behalf of is a feature in SAP that allows a company to pay an invoice on behalf of another company. This feature is used when the company receiving the payment does not have the capability to process payments directly. The company making the payment is referred to as the payer, and the company receiving the payment is referred to as the payee. 
  
  How to use it: 
  In order to use this feature, the payer must first create a business partner in SAP for the payee. This business partner will be used to store all of the relevant information about the payee, such as their address and contact information. Once this is done, the payer can then create an invoice for the payee and select “payee on behalf of” as the payment method. The payment will then be processed through SAP and sent to the payee. 
  
  Tips & Tricks: 
  When creating a business partner for a payee, it is important to make sure that all of the relevant information is entered correctly. This will ensure that payments are processed correctly and sent to the correct address. Additionally, it is important to make sure that all invoices are created correctly and that all of the necessary information is included. 
  
  Related Information: 
  This feature is part of SAP’s AP-BP FDN-Business Partner Data Management component.