Previous	Next		Contents	Index	Navigation	Glossary	Library

Drop shipments are created as sales orders in Order Entry. The Purchase Release concurrent program in Order Entry creates rows in the Requisition Import tables in Purchasing. Then Purchasing's Requisition Import process creates the requisitions. Drop shipments are marked with the Source Type of External in Order Entry and Supplier in Purchasing.

When the drop shipment has been sent to the customer, the supplier can confirm the shipment through a phone call, an invoice, or an Electronic Data Interchange (EDI) document, such as an Advance Shipment Notice (ASN).

When you receive confirmation of a drop shipment, enter the shipment as a receipt, even though you have not received the item physically (because your customer has received it directly). If your supplier sends only an invoice, you need to enter a passive receipt. This creates inbound and outbound material transactions in your system for accounting purposes.

You need to associate drop shipments with a receiving location. See: Associating Ship-to and Receiving Locations.

Drop shipments support a Destination Type of Expense or Inventory only.

You can handle returns of drop shipments using standard Order Entry/Shipping or Purchasing functionality. There are different ways you may want to handle returns depending on whether the customer returned the item to you or directly to the supplier.

Note: You should not drop-ship internal sales orders.

See Also

Drop-Ship Order Flow (Order Entry/Shipping)

Drop-Ship Return Flow

Purchase Release (Order Entry/Shipping)

Advanced Shipment Notices (ASNs)

Entering Receipt Header Information

Entering Receipt Lines