Example of external material delivery

In case of external material delivery, LN carries out invoicing for transactions within a single logistic company that involve entities that are linked to different enterprise units.

Example

A sales office and a warehouse of a single logistic company are linked to different enterprise units. The sales-office's enterprise unit is linked to financial company 100 and the warehouse's enterprise unit is linked to financial company 200. A sales order arrives from an external business partner to the sales office.

The sales office initiates a warehouse order to ship the goods from the plant to the business partner. The warehouse order contains this information:

  • Ship-from address
  • Ship-to business partner and ship-to address
  • Invoice-to business partner
  • Sales-order number
Payments

As the enterprise unit of the ship-from warehouse differs from the enterprise unit of the invoice-to business partner on the warehouse order, LN generates triangular payments in Financials.

Invoice

The sales order/receipt activates the sales office to create an invoice to the invoice-to business partner. Internally, the warehouse's financial company expects a payment for the goods. The warehouse order issue to the ship-to business partner results in:

  • The generation of an open receivable invoice for the warehouse, in the Accounts Receivable of the financial company of the warehouse's enterprise unit.
  • The generation of an open payable invoice for the sales office, in the Accounts Payable of the financial company of sales office's enterprise unit.

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