Internal and external invoicing

In the Freight Invoicing module, invoices can be created for both internal and external business partners.

External business partners are the customers or suppliers on whose behalf the transportation costs are incurred. Business partners are maintained in Common. Suppliers and customers are maintained as buy-from business partners and sold-to business partners. Invoices are sent to the invoice-to business partners of the sold-to and buy-from business partners.

The shipping office receives the invoice from the carrier. In turn, the shipping office invoices the sales office, the warehouse, the service department, or the purchase office internally to be compensated for the carrier charges incurred.

In Common, shipping offices, service departments, sales offices, and purchase offices are maintained as departments. To enable invoices to be created for the business partners related to departments, relations must be defined between the departments. Relationships are defined in the Enterprise Modeling Management module of Common.

To create an internal invoicing relationship between two departments, two relationships must be defined. The first relationship indicates whether the from-entity or the to-entity is responsible for paying the transportation costs. The second relationship is between the shipping office and the responsible entity of the first relationship. If the responsible entity of the first relationship is also responsible in the second relationship, an internal invoice must be created.