Create a Payment for a Third Party Payee

You can make payments to a Third Party using the Payment Request (PRC) document. For this the following needs to be done:

1. Establish the third party on the Disbursement Options of the VCUST for the vendor.

   A third party vendor (i.e. Vendor B) must be set up on VCUST as a regular vendor record with the Third Party Vendor check box selected. Then you must establish the relationship between the third party vendor (Vendor B) and the primary vendor (vendor to be paid on the Payment Request, i.e., Vendor A). Enter the following on the Disbursement Option section of primary vendor (Vendor A) on VCUST: Third Party Code (Vendor B, vendor code identified as the third party vendor). Third Party Approved by (User ID of the approver) Third Party Reason (reason for the third party designation)

    

2. Create a Payment Request document from the Document Catalog.  

3. Complete the Header section.

   No particular Header field is mandatory nor is any required for this task.  However, Document Name and/or Document Description can be conditionally required with the Document Control (DCTRL) table. If the current Application Date should not be used, then manually enter the correct date in the Record Date field. If the default Fiscal Year should not be used, then manually enter the correct year, (that is, prior year or next year), in the Fiscal Year field.  Any manually entered year will be used on all accounting lines unless manually entered at that level If the default Accounting Period should not be used, then manually enter the correct accounting period, (that is, prior period or next period), in the Period field.  Any manually entered period will be used on all accounting lines unless manually entered at that level.

    

4. Complete the Vendor section.

   Click the Vendor link on the secondary navigation panel.   Click Insert New Line. Enter the Vendor Code of the primary vendor (Vendor A). In the Disbursement Options section, select the Pay Third Party check box. The disbursement options for the third party vendor will be used instead of the disbursement options of the primary vendor. This can be seen when the Payment Request is submitted and updated to the Disbursement Request (DISRQ) page. This payment will be paid to the third party vendor instead of the primary vendor. This logic will be accounted for at the time the disbursement document is created during the Automated Disbursement process. Please see Create a standalone payment request for ad hoc payments (PRC) for more information on the Disbursement Options and how they are inferred.

    

5. Complete the remainder of the document as detailed in Create a standalone payment request for ad hoc payments (PRC).

6. Click the Validate button to validate for errors.  

7. If errors exist, fix the errors and repeat Step 6.  If no errors exist, then continue with next step.

8. Click the Submit button to submit the document.

9. Once the Payment Request is submitted, verify update to the Disbursement Request (DISRQ) page. The Third Party Vendor should be updated to the Payee fields while the primary vendor is updated to the Vendor fields. The disbursement options of the third party vendor should be updated to the Disbursement Control section. Note that one record will be created on DISRQ for each Accounting Line of the Payment Request.