A Promise To Pay May Reference A Third Party Payor

In addition to referencing the account whose debt is insulated by the promise to pay, the promise to pay must also reference the account that is responsible for making the payments. We refer to this second account as the promise to pay's "payor".

While the payor's account is typically the same as the account whose debt is insulated by the promise to pay, you can indicate a third-party payor (e.g., a social service agency) is responsible for making the promise to pay's scheduled payments.

If your organization allows third-party payors, you can define each on the third-party payor control table. This control table exists to simplify the data-entry effort when you create a promise to pay (as it defines the account associated with the third-party payor).