diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index 5a19426..43a5f5e 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -151,7 +151,7 @@
 		si1 = create_sales_invoice(rate=1000)
 		si2 = create_sales_invoice(rate=300)
 		si3 = create_sales_invoice(qty=-1, rate=300, is_return=1)
-		
+
 
 		pe = get_payment_entry("Sales Invoice", si1.name, bank_account="_Test Bank - _TC")
 		pe.append('references', {
@@ -1828,23 +1828,12 @@
 		acc_settings.save()
 
 	def test_inter_company_transaction(self):
+		from erpnext.selling.doctype.customer.test_customer import create_internal_customer
 
-		if not frappe.db.exists("Customer", "_Test Internal Customer"):
-			customer = frappe.get_doc({
-				"customer_group": "_Test Customer Group",
-				"customer_name": "_Test Internal Customer",
-				"customer_type": "Individual",
-				"doctype": "Customer",
-				"territory": "_Test Territory",
-				"is_internal_customer": 1,
-				"represents_company": "_Test Company 1"
-			})
-
-			customer.append("companies", {
-				"company": "Wind Power LLC"
-			})
-
-			customer.insert()
+		create_internal_customer(
+			customer_name="_Test Internal Customer",
+			represents_company="_Test Company 1"
+		)
 
 		if not frappe.db.exists("Supplier", "_Test Internal Supplier"):
 			supplier = frappe.get_doc({
@@ -1970,6 +1959,39 @@
 		frappe.local.enable_perpetual_inventory['_Test Company 1'] = old_perpetual_inventory
 		frappe.db.set_value("Stock Settings", None, "allow_negative_stock", old_negative_stock)
 
+	def test_sle_if_target_warehouse_exists_accidentally(self):
+		"""
+			Check if inward entry exists if Target Warehouse accidentally exists
+			but Customer is not an internal customer.
+		"""
+		se = make_stock_entry(
+			item_code="138-CMS Shoe",
+			target="Finished Goods - _TC",
+			company = "_Test Company",
+			qty=1,
+			basic_rate=500
+		)
+
+		si = frappe.copy_doc(test_records[0])
+		si.update_stock = 1
+		si.set_warehouse = "Finished Goods - _TC"
+		si.set_target_warehouse = "Stores - _TC"
+		si.get("items")[0].warehouse = "Finished Goods - _TC"
+		si.get("items")[0].target_warehouse = "Stores - _TC"
+		si.insert()
+		si.submit()
+
+		sles = frappe.get_all("Stock Ledger Entry", filters={"voucher_no": si.name},
+			fields=["name", "actual_qty"])
+
+		# check if only one SLE for outward entry is created
+		self.assertEqual(len(sles), 1)
+		self.assertEqual(sles[0].actual_qty, -1)
+
+		# tear down
+		si.cancel()
+		se.cancel()
+
 	def test_internal_transfer_gl_entry(self):
 		## Create internal transfer account
 		account = create_account(account_name="Unrealized Profit",
diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index 4ea0e11..844c40c 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -423,7 +423,7 @@
 					or (cint(self.is_return) and self.docstatus==2)):
 						sl_entries.append(self.get_sle_for_source_warehouse(d))
 
-				if d.target_warehouse:
+				if d.target_warehouse and self.get("is_internal_customer"):
 					sl_entries.append(self.get_sle_for_target_warehouse(d))
 
 				if d.warehouse and ((not cint(self.is_return) and self.docstatus==2)
diff --git a/erpnext/selling/doctype/customer/test_customer.py b/erpnext/selling/doctype/customer/test_customer.py
index b1a5b52..908ba27 100644
--- a/erpnext/selling/doctype/customer/test_customer.py
+++ b/erpnext/selling/doctype/customer/test_customer.py
@@ -352,3 +352,28 @@
 			'credit_limit': credit_limit
 		})
 		customer.credit_limits[-1].db_insert()
+
+def create_internal_customer(**args):
+	args = frappe._dict(args)
+
+	customer_name = args.get("customer_name") or "_Test Internal Customer"
+
+	if not frappe.db.exists("Customer", customer_name):
+		customer = frappe.get_doc({
+			"doctype": "Customer",
+			"customer_group": args.customer_group or "_Test Customer Group",
+			"customer_name": customer_name,
+			"customer_type": args.customer_type or "Individual",
+			"territory": args.territory or "_Test Territory",
+			"is_internal_customer": 1,
+			"represents_company": args.represents_company or "_Test Company with perpetual inventory"
+		})
+
+		customer.append("companies", {
+			"company": args.allowed_company or "Wind Power LLC"
+		})
+		customer.insert()
+
+		return customer
+	else:
+		return frappe.get_cached_doc("Customer", customer_name)
\ No newline at end of file
diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index 91e7c00..dffc730 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -430,12 +430,18 @@
 		})
 
 	def test_delivery_of_bundled_items_to_target_warehouse(self):
+		from erpnext.selling.doctype.customer.test_customer import create_internal_customer
+
 		company = frappe.db.get_value('Warehouse', 'Stores - TCP1', 'company')
+		customer = create_internal_customer(
+			customer_name="_Test Internal Customer 2",
+			allowed_company="_Test Company with perpetual inventory"
+		)
 
 		set_valuation_method("_Test Item", "FIFO")
 		set_valuation_method("_Test Item Home Desktop 100", "FIFO")
 
-		target_warehouse=get_warehouse(company=company, abbr="TCP1",
+		target_warehouse = get_warehouse(company=company, abbr="TCP1",
 			warehouse_name="_Test Customer Warehouse").name
 
 		for warehouse in ("Stores - TCP1", target_warehouse):
@@ -444,10 +450,16 @@
 			create_stock_reconciliation(item_code="_Test Item Home Desktop 100", company = company,
 				expense_account = "Stock Adjustment - TCP1", warehouse=warehouse, qty=500, rate=100)
 
-		dn = create_delivery_note(item_code="_Test Product Bundle Item",
-			company='_Test Company with perpetual inventory', cost_center = 'Main - TCP1',
-			expense_account = "Cost of Goods Sold - TCP1", do_not_submit=True, qty=5, rate=500,
-			warehouse="Stores - TCP1", target_warehouse=target_warehouse)
+		dn = create_delivery_note(
+			item_code="_Test Product Bundle Item",
+			company="_Test Company with perpetual inventory",
+			customer=customer.name,
+			cost_center = 'Main - TCP1',
+			expense_account = "Cost of Goods Sold - TCP1",
+			do_not_submit=True,
+			qty=5, rate=500,
+			warehouse="Stores - TCP1",
+			target_warehouse=target_warehouse)
 
 		dn.submit()
 
@@ -487,6 +499,9 @@
 		for i, gle in enumerate(gl_entries):
 			self.assertEqual([gle.debit, gle.credit], expected_values.get(gle.account))
 
+		# tear down
+		frappe.db.rollback()
+
 	def test_closed_delivery_note(self):
 		from erpnext.stock.doctype.delivery_note.delivery_note import update_delivery_note_status