Module 1: SALES ORDER MANAGEMENT
Module 2: SALES PRICES AND DISCOUNTS
Module 3: CUSTOMER SERVICE FEATURES
Module 4: PURCHASE ORDER MANAGEMENT
Module 5: REQUISITION MANAGEMENT
Module 6: ITEM CHARGES
Module 7: ORDER PROMISING
- Lesson 1: Sales Order Promising Key Concepts
- Lesson 2: Sales Order Promising Definitions and Calculations
- Lesson 3: Date Calculation Setup for Sales Orders
- Lesson 4: Promising Sales Order Delivery
- Lesson 5: Purchase Order Promising Definitions and Calculations
- Lesson 6: Date Calculation Setup for Purchase Orders
- Lesson 7: Estimating Purchase Order Receipts
- Lesson 8: Estimate a Transfer Order Receipt & Calendars
Module 8: RETURNS MANAGEMENT
Module 9: ASSEMBLY MANAGEMENT
Module 10: ANALYSIS AND REPORTING
Lesson 5: Drop Shipments
A drop shipment is the shipment of an item, or the consignment of an item, from a company’s vendor directly to a customer. Companies use drop shipments when they want to avoid handling the physical goods in an order, such as stocking and delivering. However, typically the companies still want to fulfill the customer’s request and include the transaction in the calculation of the cost of goods sold and the cost of goods profit.
Microsoft Dynamics NAV also makes sure that the correct inventory value and the item costs are calculated. Although both the sales and purchase transactions of the dropshipment are registered, the dropshipped items do not physically enter the company’s inventory.
The Drop Shipments Process Flow figure shows how drop shipments are managed
Drop shipments include the following tasks:
- The customer places a sales order with the company.
- The company places a purchase order with the vendor.
- The vendor delivers the ordered items directly to the customer.
- The vendor invoices the company for the shipment. The company invoices the customer.
Alicia, the purchasing agent, is responsible for creating the purchase order for the drop shipment items that CRONUS has sold to customer 10000. Microsoft Dynamics NAV – Trade
Create purchase orders for dropshipments by using the following methods:
- Directly, by using the standard purchase order functionality.
- Indirectly, as a part of a regular planning activity by using the requisition worksheet. For more information about this method, refer to the topic titled “How to Create Purchase Orders for Drop Shipments Indirectly” in the online Help, or refer to “Requisition Management” in this training material.
Now you must post the purchase order as invoiced.
- Verify that you are switched back to the purchase order (posting the sales order as invoiced should have deleted the sales order and positioned you back on the purchase order).
- On the Home tab of the purchase order, click Post.
- Click OK to invoice the purchase order.
The drop shipment process is now completed.
To make sure that the transactions in a drop shipment do not affect the inventory quantity and value, Microsoft Dynamics NAV creates the item ledger entries that represent the sale and the purchase at the same time. Additionally, it automatically links them by creating a fixed application.