I maintained the alternative payee at the contract account level under payments/taxes tab for outgoing payment method as refunds. Now when I executed payment run and create the outgoing payment check, the refund check is still getting issued in the name of original BP and not in name of alternative payee BP. As per sap help for the alternative payee field, "if an automatic payment procedure (e.g. check, transfer) has been arranged for an account, you can enter an alternative payee, provided payment is not to be made to the contract person, but to an account or address of a third party." Now the refund document which got posted as a result of payment run (FPY1) has been posted at the CA level so the payment was not made to the contract person (original BP).
I would also like to mention that when I maintained the alternative payee BP number at the document level under payments data tab of the document, the outgoing refund check got created in name of alternative payee BP.
My question is what I need to do so that the outgoing check gets issued in name of alternative payee BP when the same is maintained at the CA level?
Thanking you all in anticipation.