What is third-party remittance in SAP PY-US - USA?

SAP Term: third-party remittance

• Component: PY-US

• Component Name: USA

• Description: An SAP solution for transferring HR posting data to FI and generating external payments.

Smart SAP Assistant

• Key Concepts: 
  Third-party remittance is a feature of the PY-US USA Payroll component of SAP that allows employers to send payments to third-party vendors, such as insurance companies, for employee benefits. This feature allows employers to easily manage their payroll and benefit payments in one place. 
  
  How to use it: 
  To use the third-party remittance feature, employers must first set up the vendor in the system. This can be done by entering the vendor’s information into the system, such as their name, address, and payment details. Once the vendor is set up, employers can then enter the payment information for each employee’s benefit into the system. The system will then generate a payment file that can be sent to the vendor. 
  
  Tips & Tricks: 
  When setting up a vendor in the system, make sure to double-check all of the information entered for accuracy. This will ensure that payments are sent to the correct vendor and that employees receive their benefits on time. Additionally, it is important to keep track of all payments made through third-party remittance so that employers can easily reconcile their accounts at the end of each month. 
  
  Related Information: 
  For more information on third-party remittance in SAP PY-US USA Payroll, please refer to SAP’s official documentation or contact your local SAP representative.