| # Entity-entity relationships In the Entity - Entity Relationships (tcemm2110m000) session, you can define goods transfer relationships between specific entities. Entity-type combinations The following table shows from and to which types of entities you can define entity-type relationships.
Entity Type From | Entity Types To
Purchase office | Sales Office, Service Department, Accounting Office, Warehouse
Sales office | Sales Office, Service Department, Accounting Office
Service Department | Sales Office, Service Department, Accounting Office, Warehouse
Accounting office | Sales Office, Service Department, Accounting Office, Warehouse
Warehouse | Sales Office, Service Department, Accounting Office, Warehouse
Work center | Sales Office, Work Center
Shipping office | Purchase Office, Sales Office, Service Department, Accounting Office, Warehouse, Shipping Office
Multicompany For most of the entity types, the entity-entity relationships only apply to entities within the same logistic company. For most of the entity types, the entity-entity relationships only apply to entities within the same logistic company. The following entity-entity relationships can be defined from an entity in one company to an entity in another company: Warehouse-warehouse relationships. Relationships from a shipping office to all other entity types, except for the relationship from one shipping office to another shipping office. Details The following sections provide details for specific types of goods transfer relationships. Warehouse and warehouse The relationship between a warehouse in one logistic company to a warehouse in another logistic company makes it possible to carry out intercompany warehouse orders. Purchase office and sales office If you define a relationship between a purchase office and a sales office, ERP LN can generate internal invoices between the financial companies that are linked to the offices. For example, the relationship between a purchase office and a sales office is required if the sales office receives an order for goods that are not in stock. The sales office can request the purchase office to purchase the goods and deliver them directly to the customer. The sales office invoices the customer, and the purchase office invoices the sales office. ERP LN generates an invoice from the purchase office to the sales office. Shipping office and sales office or purchase office ERP LN generates freight orders for delivery of the goods on sales orders and purchase orders. The shipping office that is linked to the issuing warehouse or the receiving warehouse is responsible for planning the delivery and pays the carrier's invoice. The sales office invoices the business partner for the order, or the purchase office pays the business partner. If you define a goods transfer relationship between the shipping office and the sales office or purchase office, ERP LN can generate the internal invoices between the shipping office and the sales office or purchase office to balance the accounts. Shipping offices and warehouses If a freight order is created for a warehouse transfer order, two warehouses are involved. If the warehouses are linked to different shipping offices, two shipping offices are also involved. One of the shipping offices must plan the goods transfer, and one of the shipping offices or warehouses must pay the carrier's invoice. You can define goods transfer relationships between warehouses and between shipping offices to specify whether the issuing entity or the receiving entity is responsible for planning the goods transfer and paying the carrier's invoice. ERP LN can generate the internal invoices between the entities involved to balance the accounts. Shipping offices and Shipping offices For warehouse transfer between warehouses that are lined to different shipping offices, you must define the relationship between the shipping offices. Accounting offices To support tax registration in foreign countries for sales transactions and service transactions in a multicompany environment, you can define the relationships between accounting office and logistic offices and departments. For details, see Tax registration in a foreign country. Related topics Overview of enterprise modeling Goods transfer relationships To use triangular invoicing Intercompany settlement transactions – setup Transfer pricing Tax registration in a foreign country |