Drop Ship
Automate creation of Supplier Purchase Orders from Sales Orders
Last updated
Automate creation of Supplier Purchase Orders from Sales Orders
Last updated
Drop shipped orders result from Purchase Orders initiated by an incoming Sales Order. Your Supplier ships the products directly to your Customer. You invoice your Customer, and your Supplier sends you their invoice. The system can execute and track this entire process.
These types of Items can be set to trigger drop shipments:
Stock
Assembly Items
Non-stock
Service
Charge
Shipments track the journey of allocated from Inventory. Because drop shipments originate from your Suppliers you can configure your system to use Shipments so you always have a record of what was shipped.
Go to Setup>Configuration>Shipments
Click Edit.
Check the 'Allow Drop shipped Items' box and save.
See Shipments.
On the Purchasing/Costs tab of each Item there you can set the default behavior of each Item to dropship.
Default Order Type
Standard
Drop Shipped
Special Order
When you add an Item set to Drop Ship on the Line Item table of a Sales Order or Sales Quote the letter ‘D’ will be displayed to the left of the Item Code. See 'Indicators'.
Preferred Supplier(s) can be stored on the ‘Preferred Supplier’ table on the ‘Purchasing/Costs’ tab on the Item Master. This table stores:
Supplier
A Supplier from your Suppliers List
Item Code
The Supplier’s part / SKU code. This code will appear on the Purchasing Documents.
Description
Unit Cost
The last cost. Manually entered.
Stock
Suppliers last known stock level
Minimum Order Quantity
The supplier’s threshold.
Average Lead Time
In days
Use on Docs
Use this data on Purchase Documents
Default
The default preferred supplier.
You can access and manipulate the preferred supplier from the Action ‘Preferred Suppliers’ on the Sales Quote and Sales Order Documents. This is useful if you need to Drop Ship a Standard Item (one you don’t normally Drop Ship).
When you click the ‘Preferred Supplier’ Action, a modal (popup) window will appear:
Preferred Suppliers
Item
Supplier
▢ DS
▢ SO
ABC123
ABC Supplies
▢
▢
DEF345
DEF Supplies
🗹
▢
In the above example the Document has two line Items in the Line Item table. DEF345 is set to Drop Ship. The Preferred Suppliers for the Items are displayed as View only.
You can select and change the Item preferred supplier
Preferred Suppliers
Item
Supplier
▢ DS
▢ SO
ABC123
Preferred Suppliers
ABC Supplies
Available Suppliers
DEF Supplies
GHI Supplies
▢
▢
DEF345
▢
▢
Preferred Suppliers
Item
Supplier
▢ DS
▢ SO
ABC123
ABC Supplies
🗹
▢
DEF345
DEF Supplies
▢
▢
You can select and change the Item ‘Default Order Type’ . In the above example Item ABC123 is set to Drop Ship.
Sales>Sales Order>Configure>Dropship/Special Order
The purpose of this control is to determine where the unit cost is derived and applied from, specifically:
the unit cost specified on the preferred supplier table located on the Purchasing tab of the respective Item Master.
the arbitrary cost on the Sales Order. A typical use case is where you are brokering the sale of an Item. You agree on a cost with the supplier, back to back with agreeing on a cost with the end customer.
the unit cost specified by you on the respective Item Master
List Drop Ship Orders (Action>Drop Ship)
List Drop Ship Orders (Bill/Purchase Invoice received) (Action>Drop Ship)
List Drop Ship Orders (No PO) (Action>Drop Ship)
Create Drop Ship Purchase Orders from the selected Orders (Action>Drop Ship)
Create Invoices (Bill received) from the selected Orders (Action>Drop Ship)
