| To use triangular invoicing |  |
| ERP LN carries out triangular invoicing for transactions within a single logistic company that involve entities which 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 the following information: The ship-from address. The ship-to business partner and the ship-to address. The invoice-to business partner. The sales-order number. No invoice is required between the sales office's enterprise unit and the warehouse's enterprise unit because they belong to the same logistic company. 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, ERP 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 module 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 module of the financial company of sales office's enterprise unit. Related topics Goods transfer relationships Entity-entity relationships To set up intercompany settlement transactions Transfer pricing |