<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/fm/onlinemanual/000038" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Internal and external invoicing</Title>
		<Keyword><Level1>business partner</Level1>
		</Keyword>
		<Keyword><Level1>internal</Level1>
		</Keyword>
		<Keyword><Level1>external</Level1>
		</Keyword>
		<Keyword><Level1>invoice</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>In the <GUIRef href="/baanerp/fm/fri" role="module">Freight Invoicing</GUIRef> module, invoices can be created for both internal and external business partners.</Paragraph>
		<Paragraph>External business partners are the customers or suppliers on whose behalf the transportation costs are incurred. Business partners are maintained in <GUIRef href="/baanerp/tc" role="package">Common Data</GUIRef>. 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.</Paragraph>
		<Paragraph>Internal business partners are departments in larger organizations that can be invoiced internally. In large organizations, the shipping office arranges transportation on behalf of internal business partners such as sales or purchase offices. The shipping office receives the invoice from the carrier. In turn, the shipping office invoices the sales office, the warehouse, or the purchase office internally to be compensated for the carrier charges incurred.</Paragraph>
		<Paragraph>In <GUIRef href="/baanerp/tc" role="package">Common Data</GUIRef>, shipping offices, 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 <GUIRef href="/baanerp/tc/emm" role="module">Enterprise Modeling Management</GUIRef> module of <GUIRef href="/baanerp/tc" role="package">Common Data</GUIRef>.</Paragraph>
		<Paragraph>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.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>An internal invoice can only be created if the from-entity and the to-entity of the second relationship belong to different financial companies.</Paragraph>
		</Note>
		<ExampleSection><SectionTitle>Example</SectionTitle>
			<TABLE border="1"><THEAD><TR><TH colspan="3" align="center">Relationship 1</TH>
					</TR>
					<TR><TH align="left">From-entity</TH>
						<TD align="left">To-entity</TD>
						<TD align="left">Responsible entity</TD>
					</TR>
				</THEAD>
				<TBODY><TR><TD align="left">Warehouse</TD>
						<TD align="left">Sales office</TD>
						<TD align="left">Sales office</TD>
					</TR>
				</TBODY>
			</TABLE>
			<TABLE border="1"><THEAD><TR><TH colspan="3" align="center" width="274">Relationship 2</TH>
					</TR>
					<TR><TH align="left" width="78">From-entity</TH>
						<TD align="left" width="62">To-entity</TD>
						<TD align="left" width="126">Responsible entity</TD>
					</TR>
				</THEAD>
				<TBODY><TR><TD align="left" width="78">Shipping office</TD>
						<TD align="left" width="62">Sales office</TD>
						<TD align="left" width="126">Sales office</TD>
					</TR>
				</TBODY>
			</TABLE>
			<Paragraph>The responsible entity in Relationships 1 and 2 is the entity that pays for the freight costs, which is the entity to which the internal invoice is sent.</Paragraph>
		</ExampleSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tg/onlinemanual/tgerm" role="manual">Entity Relationship Modeling</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000326" role="manual">Entity-entity relationships</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
