| # 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. Related topics Intercompany settlement transactions – setup |