What is Drop-Ship Purchase Order?
Drop-Ship is a purchase order. It is used to purchase items on behalf of a customer. A customer also can be a vendor. The items on the purchase order are shipped directly to the customer shipping address without physically received the inventory. The vendor will send the invoice to business and they will invoice the customer. The quantity on hand isn’t updated in Inventory Control, but the current cost for the drop-shipped items and the item vendor information will be updated when the invoice is posted. If the item uses the Average Perpetual valuation method, the current cost for the drop-shipped item won’t be updated.
To enter a Drop-Ship Purchase Order:
1. Go to: Transaction–>Purchasing–>Purchase Order Entry.
2. Choose Type as Drop-Ship in Purchase Order Entry window.
3. Enter a purchase order number, Vendor ID and date.
4. After entering Vendor ID, GP will pop up to enter Drop-Ship Customer window.
5. In the Enter Drop-Ship Customer window, enter or select the customer ID and ship-to address ID where the vendor is shipping the items. Choose OK to return to the Purchase Order Entry window.
6. Mark Allow Sales Document Commitments to allow purchase order line items to be committed to matching sales order line items.
7. Enter item number in the scrolling window.
9. If user enter a non-inventoried item, need to enter the unit cost. If entered an inventoried item, GP will get default unit cost and also can modify the default unit cost.
10. Enter a site ID, or accept the default site.
11. Continue to enter all the line items for the purchase order.
12. Select the line item and choose the button next to the Quantity Ordered heading to view, add, or delete commitments in the Sales Commitments for Purchase Order window.
13. Enter below optional fields if needed.
- Tax schedule ID.
- Trade discount.
- Tax amounts.
- Comment ID.
14. Save the purchase order.
Hope this helps!!!