Payment setoff between Vendor and Alternative payee vendor

Question

Hi
It is assumed that if a vendor account points to another vendor account for payment i.e Alternate Payee vendor, the two account balances will be combined into one payment.  This is currently not happening. 
A separate payment is issued under each vendor account.(i.e Original vendor and the Alternative payee vemdor).
For an example a vendor that is linked to another for payment but there is a credit sitting on the Payee account that is not getting offset against the other invoices paid to the vendor.
Note: Both Original vendor and Alternative payee vendor are created as vendors and payments are due to both the vendors.
Regards

Answer 1

Hi,
Your assumption does work in our system (604). 
This was the test I ran.
Created main vendor.
Created invoices and credit memo.
Went back and updated vendor record to add an Alternative Payee.
Then created additional invoices but still used the main vendor number.
Ran F110 and all invoices and credit memo entered above paid to the Alternative Payee - non to Main Vendor but clearing docs are still under the Main Vendor under FBl1n.
I think that is what you were wanting to work in yours?  Correct?
Some questions for you:
1. Did you check to see if there are any OSS notes?  like 1449061 or 1432181 that may apply?
2. Did you confirm that both the main vendor and the alternative payee have the same payment methods??
3. Have you analyzed the invoices/credit memos that the system is still paying on the main vendor to see what may be different about those?  For example are you using payment method supplement?