We recently upgraded to GP2016 and started using the drop ship box on the sales transaction entry window for items we are drop shipping to a customer. We had this option before but never utilized it very extensively.
Upon our making this change, I've noticed a change in how things are flowing thru to my general ledger.
The short version of my question is this:
On an item card set up (if anyone out there is using the drop ship box), I'm curious what GL account code you are using on the item card for the drop ship items line. Is it an inventory account, a COGS account or is it some other account?
I have a long explanation for why and what I'm trying to do, but I thought I'd start small and work my way up to the crazy insane things we do and why.
Thanks in advance for any input on this.
Hi Kurt.We do use the drop-ship button as well. I hope to have time to get back to you today regarding this. Stay tuned.
Hi Curt! You will want to use a separate GL account for drop ships. Something like Accrued Drop Ship. This account should be used for the PO side and the SOP side so that when the SOP invoice is posted, it takes it out of Accrued Drop Ship so at any given point in time you will know what is currently outstanding in your drop ship account. When you post the drop ship invoice, it should be debiting AR, crediting sales, debiting COGS and crediting the drop ship account.
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