How You Set Up Third-Party Payments

A third-party payment is a payment that you make to a supplier on behalf of another supplier. Setting up third-party payments includes the following tasks:

Creating the Third Party

1. In the Suppliers work area, click Create Supplier.

2. Complete the information on the Profile and Address tabs.

   • Set the Address Purpose field to Remit to.

   • (Optional) Associate a bank account and default payment method with the address.

Note: You don't have to create a supplier site unless the third party is a supplier that sends you invoices.

Defining the Relationship Between the Third Party and the Supplier

1. In the Suppliers work area, click Manage Suppliers.

2. Search for the supplier on whose behalf the third party receives payment.

3. Add the third party to the Third-Party Payment Relationship section on the Invoicing tab on the Edit Site page. Consider marking the relationship as the default relationship for new invoices and payments.

   This table describes each attribute of a third-party payment relationship.

   Attribute	Description
   Remit-to Supplier	Enter the party designated to receive payment on behalf of the supplier on the invoice.
   Address Name	Enter the address of the party designated to receive payment on behalf of the supplier on the invoice.
   From Date, To Date	Specify an inclusive date range for the relationship. When you create an invoice or payment, the invoice and payment dates are used to identify valid third-party payment relationships for the supplier site. Note: When you end date an existing relationship, you must review all unpaid or partially paid invoices for that relationship.
   Description	Enter text to include in the payment file. For example, you can enter text to print on the payment document as reference information.

Note: The Merge Supplier process doesn't merge third-party payment relationships.

(Optional) Setting the Remit-to Supplier Override Option

1. In the Setup and Maintenance work area, go to the following:

2. Offering: Financials

3. Functional Area: Payables

4. Task: Manage Invoice Options, with the business unit scope set

5. Click Apply and Go to Task.

6. Select the Allow remit-to supplier override for third-party payments option to allow override of the remit-to supplier on the invoice.

(Optional) Setting the Payee Override Option

1. In the Setup and Maintenance work area, go to the following:

2. Offering: Financials

3. Functional Area: Payables

4. Task: Manage Payment Options, with the business unit scope set

5. Click Apply and Go to Task.

6. Select the Allow payee override for third-party payments option to allow override of the payee on the payment.