How to: Make Drop Shipments
A drop shipment is the shipment of items from one of your vendors directly to one of your customers.
When a sales order is marked for drop shipment, and you create a purchase order specifying the customer in the Sell-to Customer No. field, you can link the two documents and thereby instruct the vendor to ship directly to the customer.
To create a sales order for drop shipment
To prepare a drop shipment, you create a sales order for an item as normal, except you must indicate on the sales line that the sale requires drop shipment.
- Create a sales order for an item. For more information, see How to: Sell Products.
- On the sales order line for the drop shipment, select the Drop Shipment check box. Use the Choose Columns function if the field is not visible. For more information, see User Personalization.
This functionality requires that your experience is set to Suite. For more information, see Customizing Your Dynamics 365 Experience.
To create the purchase order for drop shipment
To prepare a drop shipment for the item to be sold, you create a purchase order as normal, except you must indicate on the purchase order that it must be shipped to your customer, not to yourself.
- Create a purchase order. Do not fill any fields on the lines. For more information, see How to: Record Purchases.
- In the Sell-to Customer No. field, select the customer that you are selling to.
- Choose the Drop Shipments action, and then choose the Get Sales Order action.
- In the Sales List window, select the sales order that you prepared in the "To create a sales order for drop shipment" section.
- Choose the OK button.
The line information from the sales order is inserted on the purchase order line(s).
You can now instruct the vendor to ship the items to your customer, for example, by mailing the purchase order as a PDF.
To view the linked purchase order from the sales order
- Select the drop-shipment sales order line, choose the Order action, choose the Drop Shipment action, and then choose the Purchase Order action.
To post a drop shipment
After the vendor ships the items, you can post the sales order as shipped. You can also post the purchase order, but only with the Receive option until the sales order has been invoiced.
- Choose the icon, enter Sales orders, and then choose the related link.
- Open the sales order that you created in the "To create a sales order for a drop shipment" section.
- In the Qty. to Ship field, specify how many of the order quantity to ship, the full or a partial order quantity.
- Choose the Post or Post and Send action.
- Choose either the Ship option to invoice later, or the Ship and Invoice option to invoice immediately.