V8 - Drop shipment workflows

 

Below outlines the most common methods for processing drop shipments. Only Option 3 will affect your asset account.

 

Option 1

  1. Enable Automate Drop ship POs in the Purchasing settings.
  2. Create an invoice for the sale.
  3. From the Invoices list, locate the invoice and on its Actions dropdown, select Create drop ship purchase order. This will generate a purchase order with all relevant information from the invoice transferred to the purchase order. Save the purchase order.
  4. Sync with QuickBooks Online.

 

edit_noteNOTE: In this option, you do not receive or ship a drop shipment. The invoice syncs to QuickBooks Online to collect payment from the customer. The purchase order syncs to QuickBooks Online. The purchase expense received by QuickBooks affects the accounts payable and cost of goods sold for the items on the purchase order.

 

Option 2

  1. Create the sales order and check the box to indicate it is a drop shipment. This sale will not affect available for sale numbers.
  2. Create the purchase order from the sales order for the items and mark it as a drop shipment.
  3. Once the vendor receives the purchase order and confirms the item’s shipment:
    • Receive the purchase order.
    • Generate a shipment from the sales order.
    • Generate an invoice from the sales order.

 

Option 3 (for companies who carry no inventory and use only drop shipments)

  1. In their item definitions, change the Type of the drop-shipped items to Non-inventory.
  2. Complete the workflow using Option 1 or Option 2 above as necessary.

 

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