Please wait
Talk to Expert
Microsoft Dynamics Business central

Drop Shipment Functionality in Business Central

Banner- Drop Shipment Functionality

Drop shipment is the shipment of items from one of your vendors directly to one of your customers.

In a drop shipment, a customer initiates an order, and the vendor ships the items directly to the customer, by passing the company’s location or warehouse. Effectively we are purchasing from the vendor and then shipping directly to the customer based on the customer order.

When you mark a sales order for drop shipment and create a purchase order specifying the customer’s address in the Ship-to field, you link the two documents to instruct the vendor to ship directly to the customer.

Click on global search and write Sales order. Let make one SO and understand it.

List page will be open so Click on new button as shown below screen:

Select related customer and select Item. After selecting item we need to select Purchasing code. Here we are selecting drop ship.

Sometimes Purchasing code and Drop shipment fields are not visible to the user needs to do personalization. So that these fields will be visible.

So, we have created a sales order here.

Now go to global search and write Purchase Order. Click on new and select Vendor No.

After that go to the shipping and payment section. In ship to code, we need to select the customer address. As shown below screen:

In Customer fields you need to select customer.

In purchase Order go to action > function > Drop shipment and select sale order. As shown below screen:

All sales order related to that customer will be visible on screen as shown below screen:

After Identify your original Sale order select and click on ok. as shown below screen:

Once sales order is selected then all lines of sales order will come in Purchase order. With their quantity. as shown below screen:

If there is more than one sales order then in a purchase order user can see the total sales order list by clicking on order, drop shipment, and sales order.

User can see total sales order list. As shown below:

So here we have created both sales and purchase orders. Now let’s see its entries.

You can do ship and invoice but here we need to check entries so just ship it. And click on Ok. As shown below screen:

So for this sales order shipment is done and go to purchase order which we have created against this sales order.

In purchase order user can see quantity received field is filled. Based on sales order ship fields data.

As it’s a drop shipment so whenever a vendor will ship material or goods at that time it’s directly reached to the customer’s location.

Here system is creating 2 types to entry:

  1. Shipment entry and
  2. Receive entry.

Basically system is creating one positive entry and one negative entry.

So here you can see sales shipment entry and Purchase receipt. Both processes will be done simultaneously.

Here goods or materials are not coming into your warehouse so do not make GRN.

  • Users can not directly make purchase invoices.
  • If the user tries to make a purchase invoice without making a sales invoice so system will not accept and give an error. As shown below screen:

Once the user posts the sales order, they can then post the purchase order.

If you’re curious about how we can assist you in reaching your goals, don’t hesitate to get in touch. Our dedicated team is ready to provide support every step of the way.

Let’s turn your vision into reality together!