V9 - Drop shipment workflows

 

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

 

Option 1 (automated drop ship)

  1. Enable Automate drop ship purchase orders in the Purchase order settings (Tools & settings > Configuration > Purchasing > Purchase orders).
  2. Create an invoice for the sale (Quick add > Sales > Invoice).
  3. On the Invoices list (Operations > Sales > Invoices), select Create drop ship purchase order on the invoice's Actions menu. This will generate a purchase order with all relevant information from the invoice (except the vendor) transferred to the purchase order. Save the purchase order.
  4. Sync with QuickBooks Online (Sync > Sync now).

 

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 (manual drop ship)

  1. Create the sales order (Quick add > Sales > Sales order) and check the box to indicate it is a drop shipment. This sale will not affect available-for-sale numbers.
  2. On the Sales orders list (Operations > Sales > Sales order), select Create purchase order on the sales order's Actions menu to generate a purchase order. Select a vendor on the purchase order, then save.
  3. Once the vendor receives the purchase order and confirms the item’s shipment:
    • On the Purchase orders list (Operations > Purchasing > Purchase orders), select Receive on the purchase order's Actions menu to generate an item receipt, then save. 
    • On the Sales orders list (Operations > Sales > Sales order), select Create a shipment from the sales order's Actions menu to generate a shipment transaction, then save.
    • On the Sales orders list (Operations > Sales > Sales order), select Create an invoice from the sales order's Actions menu to generate an invoice, then save.

 

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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