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  • 1.  Drop Ship Process

    Posted Feb 12, 2019 02:31 PM

    We are trying to implement the recommended way of performing the drop ship process in GP.  Using the (quick) workflow below:

    1. Enter the sales order in GP
    2. Click the dropship box for the line items that we want to dropship
    3. Click the Actions - Purchase
    4. From the purchasing window we verify vendor, items, qtys, ship method, and ship to
    5. create the purchase order
    6. Accounts Payable receives the vendor invoice
    7. Accounts Payable "Enter/Matches" the vendor invoice to the dropship purchase order
    8. Accounts Payable then sends the item/order invoiced information to Account Receivable
    9. Accounts Receivable generates an invoice to the customer

    Question 1 - Our users are used to a ship confirmation step once the customer confirms shipment.  Is there a way to handle this?
    Q2 - We want to invoice our customers asap.  Is there a way to do this without having to post the vendor invoice?
    Q3 - We want to be able to modify the Vendor invoice number generated during the Purchasing - Enter/Match Invoice step, because it takes a long time for us to receive the actual Vendor invoice.  We also need to add fees charged by the Vendor.  This there a way to do this step?

    Mackenzie Platten
    Winston Products
    Solon OH

  • 2.  RE: Drop Ship Process

    Posted Feb 13, 2019 08:55 AM
    Hi Mackenzie

    We do drop ship pretty much exclusively so I can answer some of your questions.  I don't have an answer to Question 1.  Question 2 there is a an add on called 'Shipment Notification' that will allow you to invoice the customer before receiving the vendor invoice.  It is free but only available on Partnersource so you will have to have your GP partner get it for you.  Question 3 - we don't have the vendor invoice number generate automatically but even if you do, if you use the Shipment Notification add on you don't have to do the enter/match invoice step until you receive the vendor invoice.  Also as for adding on fees, we usually have to add freight when we get the vendor invoice and the way we do it here is to put it as a separate line item when doing the enter/match invoice.  

    Jennifer Wheeler
    Applications Solutions Administrator
    Dairy Farmers of America
    East Syracuse NY

  • 3.  RE: Drop Ship Process

    Posted Feb 13, 2019 09:17 AM
    The tool Jennifer mentions has been around a while and does overcome some of the weaknesses of the standard GP SOP drop ship functionality. 
    One thing it does not do well however is the cost flow. If you choose to use the Shipment Notification tool, and invoice the sale prior to matching the PO, the sales line item will pull the item cost from the Item record (depending on which valuation method you use on the item) not from the specific cost that the vendor charged you on the Purchase Order.
    Some people don't like that. (including me) so we do Drop Ship with out the Drop Ship altogether. In fact we hide and disable the drop ship check box in the SOp Entry window with GP Modifier so that no one can inadvertently use it.
    Then we create a warehouse Site ID called DROPSHIP with its own GL Site Segment override and we run all Drop Ship Inventory thru the Drop Ship Site using standard GP functionality.
    The user simply changes the Line Site to be Site ID equal DROPSHIP for drop ship lines.
    Now we can Receive when the Vendor Ships and Invoice after receipts or use Shipment/Invoice if the Invoice comes early.
    The DROPSHIP site ID has its own IV Stock Status report like any other site that reflects intransit inventory to the customer. It also tells us exactly what has not been invoiced yet to the Customer.

    For those using the pstl Shipment Notification tool, Jenifer mentioned, here are some useful dex.ini switches that are often overlooked:

    taShipmentNotificationAlwaysTransfer = true
    If this switch exists in the dex.ini and is set to true, orders will always be allowed to be transferred to invoices, even if the Shipped flag in the taShipmentNotification table is not marked.

    taShipmentNotificationAlwaysPost = true
    If this switch exists in the dex.ini and is set to true, invoices will always be allowed to post, even if the Shipped flag is not marked.

    taShipmentNotificationAllowVoids = true
    If this switch exists in the dex.ini and is set to true, invoices will be able to be voided, even if they have Purchase Order Commitments.

    Thaddeus Suter
    Retus, Inc

  • 4.  RE: Drop Ship Process

    Posted Feb 15, 2019 02:19 PM
    Hi Thad,

    We tried to do this with designating a Site and bin as our "Drop ship" and this worked for a few years...but as we grew and as our orders for Drop Ship are increasing, what happened was when our Purchasing person ordered items for the Drop ship order, (because of timing issues) they would allocate to another order.  The person trying to complete the Drop Ship Order and PO has to find the other order and unallocate the items.  This becomes very time consuming.  The inventory is completely screwed up now because items are stuck in the Drop ship warehouse and bin and never fully get cleared out.  We need to keep the items out of inventory because they seem to create a lot of reporting problems.  Transactions also seem to be stuck in our Accrued Trades Account every once in a while.  If you have a better way to manage this issue, I would love to hear.

    I will test the shipment notification window and ini settings this weekend.  Hopefully it will provide a solution.

    Thanks for your advice!

    Mackenzie Platten
    Winston Products
    Solon OH

  • 5.  RE: Drop Ship Process

    Posted Sep 28, 2022 08:48 AM
    Good morning Jennifer,
    I am following the thread here.  I am a Controller.  I have an ending balance in my Drop Ship account.  Is there a report I can run to justify this amount?  What are the Accountants doing at your company?  Thanks for any help you have on this matter.  We have a balance of $250K.  I would hope there is a report like an inventory report which would tie to our Drop Ship Account.


    Pioneer Athletics

  • 6.  RE: Drop Ship Process

    Posted Oct 07, 2022 03:27 PM

    @Mitchell Locklear  We are on GP2015.  We use a separate company for our dropship operations.  There is not a report or SmartList that does this.  In our operation, I supplement the deficiencies of Great Plains with the use of a database program, FileMaker Pro. 

    The problem is that the general ledger shows the receiving number (for purchasing) and the invoice number (for billing).  In FileMaker I created a table that has relationship to the Great Plains tables, such that when I import the transactions from the general ledger, ​

    This gives me a field that has the order number.  I can sort on the order number and most times these perfectly match off.  And they are tagged as RECONCILED.  Sometimes there is a small variance, that can be written off.  

    I do a secondary sort of the absolute value of the amount.  If this results in matched pairs (one from receivables and one from payables) then I tag as reconciled.  Credit Memos in payables and returns in receivables have issues.  

    If an order is not connected to the purchase order, then the order will be unidentified.  

    This maybe configurable in SmartLists, but I am not the expert there.  Since I use FileMaker for so many other aspects of deficiency it is just one more thing.  We have been using it with Great Plains since 2014 when we were on GP2010.  

    Thomas Hill
    Staff Accountant
    M&A Technology, Inc.
    Carrollton TX

  • 7.  RE: Drop Ship Process

    Posted Jan 29, 2021 01:32 PM
    Question on SOP Drop Ship lines: how can we change the ship to address?  We don't always know the ship to address immediately (end user vs customer) but we want to get our vendor PO sent off promptly for processing.  So we'll put TBD as the ship to on the SOP order, then when we know the address we'll update it.  Unfortunately it rolls the address down to the remaining lines, but not the drop ship lines.  Any way around this?  I'm hoping there's a checkbox or something I don't know of that can work around this.

    Here are the lovely warning messages we get in GP2015.

    Kristy James
    Financial Controller
    Dairyland Electrical Industries, Inc

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