| # Internal trade relationships Internal trade relationships enable you to apply the LN pricing and invoicing to the transfer of material, labor, or other costs between the entities within a company or in a multicompany structure, without using sales orders and purchase orders. You must define a internal trade relationship between entities or enterprise units if you want LN to perform one or both of these actions: Generate invoices for internal trade within a single logistic company. Apply various types of pricing (based on price origin) to internal trade, or add a surcharge percentage to the actual costs. If you do not define an internal trade relationship between two entities, all internal trade between entities of the same logistic company takes place against actual costs and without invoicing. Note Internal trade between entities other than warehouses outside the logistic company (affiliated-company business partners and external business partners) is always controlled through sales and purchase transactions. In Enterprise Modeling Management you can define internal trade relationships in these ways: Between two entities that belong to the same or, in some cases, to a different logistic company in the Entity - Entity Relationships (tcemm2110m000) session. Between two enterprise units that belong to the same logistic company in the Enterprise Unit - Enterprise Unit Relationships (tcemm0134m000) session. If no goods transfer was defined for a particular combination of entities, LN uses this goods transfer. Default values for internal trade details based on these kinds of trade: Internal Material Delivery External Material Delivery Direct Delivery Internal Subcontracting for Depot Repair If no other applicable internal trade details were defined, LN uses these defaults. To define these defaults, use the Enterprise Modeling Management Parameters (tcemm0100m000) session. The internal trade details, in turn, are defined in the Internal Trade Details (tcemm2151m000) session. Note In addition to specifying the internal trade relationship between the enterprise units and the entities, you must link the enterprise units to internal business partners. For more information on the types of entities for which you can define entity-entity relationships, refer to Entity-entity relationships. The internal trade relationship parameters The internal trade relationship parameters define some of the data that is relevant to the transactions. For example, the internal trade relationship parameters define: Price origin Any surcharges Type of invoicing Currency to be used Related topics Overview of enterprise modeling Entity-entity relationships Example of external material delivery Intercompany settlement transactions – setup Transfer pricing |