Permitted Payee as a remit to address

Question

We want to use Permitted Payee as additional remit to addresses for a vendor. We will defined a vendor A with an address, and extend it to the Company Codes where vendor invoices will be entered.  If the vendor has multiple addresses that we could send payments to, we will create additional vendors as permitted payees (Vendor B, C, and D) and they will be attached to vendor A.  All vendor invoices will be for Vendor A. 
I want to define the permitted payees as a separate account group and only general data will be defined including the address.
My question is using the permitted payee this way, do I have to extend the vendors that will be defined as permitted payees to the Company Codes where the invoices will be created.  Vendor A will be extended but I did not want to have to enter any data other than address for the permitted payee vendors.
Thank you
Cindy Collins

Answer 1

if you want to use the alternate payee or permitted payee functionality you have to extend the main vendors and the alternate payees to other entities as well. Generally it is advised to have a separate number range for the main vendor and the permitted or alternate payee. This way you can differentiate beteen your main vendors and alternate payees. it is also advised to block all permitted payee vendors for invoice posting so that only payemnts can be made to them.
Now to answer your question: Yes, you have to extend them to all entities to establish the relationship at master data level. Try using alternate payee so that you can assign multiple payees at master data. For  example AT&T USA has nexus in all states but if you want to send the payment separately for each state you need to assign multiple Alternate payee at AT&T main vendor so that you can select one at the time of booking a vendor invoice and select the right payee at docuemnt level. If you are in country USA then all alternate payee payemets gets roll up to the main vendor and you can generate one 1099 form. Hope this helps