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In the business, companies will be required to always deliver Customer Orders on time with the required materials and quantity. However, companies will not be able to keep enough stock of materials all the time to fulfill orders, due to incoming material supply lead time, logistics, distance, and other factors.
Companies often adopt the Drop Ship Sales system to accommodate such occasions, wherein the Supplier of incoming material has often directed the supply of the goods to the Company’s Customer, whose order had to be delivered.
Here the company will inform the Supplier to send the materials ideally with a Delivery Challan to the company’s Customer and send the Invoice document to the company address. The company will then send a Sales Invoice addressed to their Customer to complete the process.
GreeneStep provides complete Drop Ship Sales functionality, also enabling companies to control the Supply Costs as per need and maintain the Sales Order.
The following entities will constitute a Drop Ship Sales process in GreeneStep:
End Customer who places Order on the Company
Sales Order generated by the Company addressed to the End Customer
A Purchase Order generated by the Company based on the Sales Order, with Ship To / Site address same as that on the Sales Order
The supplier who receives Purchase Order, and delivers goods or materials to the Company’s Customer
Purchase documents sent by Supplier to company address
Sales Invoices generated by the company based on materials delivered to the Customer
Pre-requisites: Business Rules Configuration
Note: You will be required to stay on the Business Rules section until you complete all the configuration selections and save the changes to affect the Drop Ship Sales process.
Ship To / Site address preference on Drop Ship Purchase Order
Menu Path: Admin > System Settings > Business Rules > Transactions > Alerts > Purchases tab
Select your preference from one of the options for ‘Ship to/Site Address used in Purchase Order while creating a Drop Ship PO from Sales Order’.
Cost to be considered while retrieving Products in the Purchase Order generated from the Sales Order
Menu Path: Admin > System Settings > Business Rules > Transactions > Alerts > Purchases tab
Select the preference when retrieving the Product cost from the sales to purchases
The rule for saving Sales Orders with drop ship Products
Menu Path: Admin > System Settings > Business Rules > Transactions > Alerts > Sales tab
Select 'Prompt to create PO' in the Rule for saving Sales Orders with Drop Ship Products
Product Master
Menu Path: Products > Masters > Products > Purchase Tab
Select the product you want to Drop Ship, check the option in the Purchase Tab, and Save
Navigate to the Restocking tab, in the “Supplier Part Numbers and Costs section” select Primary Supplier for the Product and Save
Create a Sales Order for the chosen dropship product.
Menu Path: Sales > Sales Order > Sales Order List > Menu > New
Click on save, you will be prompted to a confirmation message box to create a Drop Ship Purchase Order. Click on the ‘Yes’ button.
Note: You also note the Ship To / Site address appearing on the Sales Order, we will talk about it again.
‘Create Dropship PO’ window screen will pop up, Select the product for which the Purchase Order needs to be created (You can select all the products or some of the products from the list when you have multiple products to purchase) and click on the Create PO menu button or press F6 in your keyboard
A confirmation message box appears asking you ‘Do you create Purchase Order(s)?’, along with a check box by the name ‘Show Status’. Click on the ‘Yes’ button with the ‘Show Status’ check box clicked.
Click on the ‘Yes’ button to display the list of Purchase Orders created
Additional Information:
GreeneStep provides some more useful options to create such linked Purchase Orders from a Sales Order, even when the Product is not a dropship product.
Create Linked PO: This option is similar to the ‘Drop Ship PO’. The only difference is in this option, the Purchase Order does not get updated with the ‘Ship To’ address from the Sales Order.
Create PO w/o Link: The Purchase order created does not have a link with the Sales Order. The SO# does not appear in the Purchase order created and vice versa.
2. You can also break the link between the Sales Order and the corresponding dropship or linked Purchase Order.
Navigate to Menu > Break Link on the Sales Order transaction. When you click on this option, the link between the PO and SO is removed and the PO# disappears from the Sales Order and Vice Versa. This option is enabled only when a Drop Ship PO or Linked PO is created from the Sales Order
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