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Drop Ship Process

  • 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?



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    Mackenzie Platten
    Winston Products
    Solon OH
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  • 2.  RE: Drop Ship Process

    SILVER CONTRIBUTOR
    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.


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    Jennifer Wheeler
    Applications Solutions Administrator
    Dairy Farmers of America
    East Syracuse NY
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  • 3.  RE: Drop Ship Process

    TOP CONTRIBUTOR
    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.



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    Thaddeus Suter
    Retus, Inc
    HELOTES TX
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  • 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!

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    Mackenzie Platten
    Winston Products
    Solon OH
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