<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/fm/onlinemanual/000038" xml:lang="en">
   <Header>
      <Title>Internal and external invoicing</Title>
      <Keyword type="header" order="d1e492293">
         <Level1>Invoicing</Level1>
         <Level2>internal and external</Level2>
      </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</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>
      <List>
         <ListIntro>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:</ListIntro>
         <ListItem>
            <Link href="/baanerp/td/glossary/glossary#SalesOffice_td" role="glossary">sales office</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/tc/glossary/glossary#PurchaOffice_tc" role="glossary">purchase office</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/ts/glossary/glossary#ServicCenter_ts" role="glossary">service department</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/tc/glossary/glossary#Warehouse_tc" role="glossary">warehouse</Link>
         </ListItem>
      </List>
      <Paragraph>The shipping office
		receives the invoice from the carrier. In turn, the shipping office invoices
		the sales office, the warehouse, the service department, or the purchase office
		internally to be compensated for the carrier charges incurred.</Paragraph>
      <Paragraph>In <GUIRef href="/baanerp/tc" role="package">Common</GUIRef>, shipping
		offices, service departments, sales offices, and purchase offices are
		maintained as <Link href="/baanerp/tc/glossary/glossary#000005" role="glossary">departments</Link>. 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</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" borderstyle="default" space-and-orientation="indented-estimated">
            <THEAD noTR="2">
               <TR no="1" isLast="false">
                  <TH colspan="3" align="center" rowspan="1">Relationship 1</TH>
               </TR>
               <TR no="2" isLast="true">
                  <TH align="left" rowspan="1" colspan="1">From-entity</TH>
                  <TD align="left" rowspan="1" colspan="1">To-entity</TD>
                  <TD align="left" rowspan="1" colspan="1">Responsible entity</TD>
               </TR>
            </THEAD>
            <TBODY noTR="1">
               <TR no="1" isLast="true">
                  <TD align="left" rowspan="1" colspan="1">Warehouse</TD>
                  <TD align="left" rowspan="1" colspan="1">Sales office</TD>
                  <TD align="left" rowspan="1" colspan="1">Sales office</TD>
               </TR>
            </TBODY>
         </TABLE>
         <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
            <THEAD noTR="2">
               <TR no="1" isLast="false">
                  <TH colspan="3" align="center" width="274" rowspan="1">Relationship 2</TH>
               </TR>
               <TR no="2" isLast="true">
                  <TH align="left" width="78" rowspan="1" colspan="1">From-entity</TH>
                  <TD align="left" width="62" rowspan="1" colspan="1">To-entity</TD>
                  <TD align="left" width="126" rowspan="1" colspan="1">Responsible entity</TD>
               </TR>
            </THEAD>
            <TBODY noTR="1">
               <TR no="1" isLast="true">
                  <TD align="left" width="78" rowspan="1" colspan="1">Shipping office</TD>
                  <TD align="left" width="62" rowspan="1" colspan="1">Sales office</TD>
                  <TD align="left" width="126" rowspan="1" colspan="1">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/fm/onlinemanual/000098" role="manual">To use Freight Management for direct deliveries</Link>
      </RelTopic>
      <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>