Create a Drop Ship PO
If a Client is placing an Order for items that you do not currently have in stock, you can issue a Drop Ship Purchase Order. This means that you will issue a PO to your Vendor and your Vendor will ship the items directly to your customer to expedite the Order. Theoretically, it would take much longer to have your Vendor ship the items to you and then you ship the items to your customer.
There are two ways to create a Drop Ship PO:
- From the Sales Orders & Quotes window.
- From the Purchase Order window.
1. Create a Sales Order with Back Ordered items
In order to issue a Drop Ship PO:
- You must have Backordered items on a Sales Order.
- The Order must have an Ordered Status of Committed or beyond.
- You must have a Primary Vendor associated with the Product(s) being sold. This can be displayed (and changed) on the line item or via the Product master record.
Optionally, you may:
- Enter your cost for the PO.
- Enter the Vendor's Part Number.
1.1. Create a Drop-Ship Purchase Order
- In the Sales Orders & Quotes window, highlight the Order for which you want to create a Drop Ship PO.
- Open the Action Menu and select Create Purchase Order(s).
- You will be presented with the Create Purchase Orders dialog box. (See next screenshot.)
1.3. The Drop Ship Purchase Order has been created.
1.4. The Drop Ship Purchase Order
After the Drop Ship PO is created: highlight the Sales Order, open the Purchase Order window and select the Sales Order Window from the Cross Reference drop-down menu to see the Drop Ship PO.
Open this newly created Purchase Order record and take notice:
- The line item Memo field contains the Order Number from which this PO was created.
- The Ship To field contains your Client's shipping address.
Note: If your Client's Order changes after you create the Drop Ship PO, the PO record will not be updated automatically. However, you can modify the PO (add, remove, change quantities, etc.) as long as the PO Status is still Open.
2. Create a Drop Ship PO without a corresponding Sales Order.
There are times when you may wish to issue a PO to be delivered to a 3rd party without involving the Sales Order process. For example, you may order raw materials for delivery to a finisher.
In this case, create your Purchase Order as you would normally, and then there are two options:
- Click the pencil icon and manually key the Ship To address into the Ship To field. (Fig. 2.1)
- Click the binoculars icon to select from a list of Ship To addresses for the Client name. (Fig. 2.2)