Drop-Ship SO to PO

Process for entering, processing, and invoicing customer sales orders with drop-shipped items – where goods are shipped directly from a vendor to the customer, while payment is received by the company taking the order.

Entry of Sales Order with Drop-Ship items

1.  Navigate to Sales Orders > Transactions > Sales Orders (SO301000). (Or select the New Sales Order tile from the Sales Orders menu.)

2. Create a new sales order of type SO.
3. Enter order header and line item details.
4. For each item intended for drop-shipping:
   1. Select the Mark for PO checkbox
   2. Set PO Source to Drop-Ship.

Create Drop-Ship Purchase Order for Sales Order

1. On the Sales Orders screen, select the ellipsis (…) menu and choose Create Purchase Order.

2. The Create Purchase Orders screen (PO505000) will display all applicable sales order lines.
3. Verify a Vendor is assigned to each drop-ship item line.
   1. If Vendor is not assigned, double-click the blank Vendor field to select a vendor.
4. Select the checkbox for each item line to include in a drop-ship PO.
5. Select PROCESS to generate the purchase order(s).

6. If a single PO is generated:
   1. It opens automatically.
7. If multiple POs are generated:
   1. Navigate to Purchases > Transactions > Purchase Orders (PO301000) to review all newly created On Hold  POs.
8. Review the generated Drop-Ship PO, which includes:
   1. Item details and quantities
   2. Customer shipping address
   3. Associated sales order reference
9. Update purchase order information if needed.
10. Select Remove Hold.
11. Send the PO to the Vendor for fulfillment.

Receive Drop-Ship Purchase Order

1. After the vendor ships the items to the customer, open the PO in the Purchase Orders screen (PO301000).
2. Select Enter PO Receipt

3. Verify and update the Receipt Qty based on actual shipment.
4. Select RELEASE to finalize the PO Receipt.

 Enter Vendor Invoice (AP Bill)

1.  When the vendor invoice is received:
   1. Select Enter AP Bill from the related PO.
2. Select RELEASE to complete the transaction.

💡 This step can be completed at a later time if the invoice is not available yet.

Invoice the Customer Sales Order

1. Open the related Customer Sales Order in the Sales Orders screen (SO301000)

NOTE: Status is automatically updated to “Completed” when all associated drop-ship lines are received.

2. Review item lines for linked PO information.
3. Select PREPARE INVOICE to generate the AR invoice.

4.  Select RELEASE to post the invoice.
5. Send the invoice to the customer.