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AP: Third Party Payments Configuration & Process

 

Third Party Payments Configuration & Process             
Business Scenerio              
Here we are the customer to Amazon Canada supplier and we have to pay to Amazon Canada Supplier. But the supplier will ask us to pay to their collection              
agency XYZ INC. Here in this scenerio we will get the invoice from Amazon Canada Supplier and we will make the payment to XYZ INC.             
              
*Against which supplier we are creating invoice to that supplier only we have to assign our third party supplier             
Eg: Our main supplier is Egoss Supplier and he asked us to remit the payment to Egoss Collection Agency. So here we will receive the invoice from Egoss Supplier              
and pay to Egoss Collection Agency. Goto Egoss supplier and create a third party relationship between the suppliers.             
              
Setups             
1. Create 3rd Party Supplier: XYZ INC Collection AgencyPathProcurement >> Suppliers >> Taskpane >> Create Suppliers           
2. Setup Invoice Options related to third party paymentsTaskManage Invoice Options>>In this task under invoice entry tab we have to check the checkbox called allow remit to supplier override for third party payments.         
3. Setup Payment Options related to third party paymentsTaskManage Payment Options>>In this task under payment accounting and overrides tab check the check box called "Allow payee override for third party payments".         
4. Create 3rd party relationshipInformationHere from which supplier we are creating invoice from that supplier we have to create the third party relationship.           
Here if you want to create the third party relationship we have to goto Amazon Canada Supplier >> Sites >> Invoicing Tab >> Third party payment relationships             
*Here XYZ is the 3rd party supplier             
              
Process             
1. Create Invoice: Amazon Canada Supplier: 25,000             
2. Process Payment to XYZ INC Collection Agency: 25,000             
              
1. Create 3 party Supplier: XYZ INC Collection Agency             
Path: Procurement >> Suppliers >> Taskpane >> Create Suppliers             
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
2. Setup Invoice options related to third party payments             
Task: Manage Invoice Options             
*Here we have to check the checkbox called "Allow remit to supplier override for third party payments".             
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
3. Setup Payment Options related to third party payments             
Task: Manage Payment Options             
*Here check the checkbox called "Allow Payee override for third party payments             
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
4. Create 3rd party relationship             
*Here we have to create the third party relationship with which supplier we are creating the invoice             
Eg: our supplier is Egoss Supplier and we need to remit the payment to a different supplier in that case we have to goto our egoss supplier and create the              
relationship between those two suppliers             
Path: Procurement >> Suppliers >> Manage Suppliers >> Supplier Site >> Invoicing Tab             
*Here assign "XYZ Supplier" to "Egoss Supplier"             
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
Process             
1. Create Invoice: Amazon Canada Supplier: 25,000>>Here in Manage Installments we have to goto third party tab which we have enabled at invoice options level. Here we have to select the supplier That is XYZ INC collection agency. And If we run PPR system will print XYZ INC Collection agency.>>Here in payment work bench we can see payee LOV since we are able to see that option because we have enabled it in payment options.>>While creation of invoice it is not mandatory to select the third party supplier in manage installments but it is mandatory to select the third party supplier while processing the payment.>>The recommodation is to select the third party supplier at invoice creation level because when we run PPR system will take amazon canada and print checks with amazon canada supplier only.     
2. Process Payment to XYZ INC Collection Agency: 25,000             
              
1. Create Invoice: Amazon Canada Supplier: 25,000             
Path: Payables >> Invoices >> Taskpane >> Create Invoices             
*Here at the time of invoice creation we have to select the XYZ INC collection agency name so that system will remit this payment to XYZ INC when we run             
PPR. In manual process we have to select the supplier at the time of payment creation or invoice creation (Optional)             
*At Manage installments we can see a column called third party payment there we have to select our third party supplier             
*Select Payment Method here              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
2. Process Payment to XYZ INC Collection Agency: 25,000             
Path: Payables >> Payments >> Taskpane >> Create Payment             
*Here we have to select the payee name to whom we need to process the payment              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
             

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