Drop ship is a sequential process which allows us to deliver orders to our customers directly from our vendors, thus saving our Inventory and transport costs. For using this functionality in Sage Intacct, we need to subscribe the Order Entry and Purchasing modules.
Whenever we create a Sales Order for a Customer, on the line items section we find a checkbox “Drop-Ship” which allows us to flag which items are to be drop-shipped. This option is available only for those items for which “Available for drop ship” flag is checked on Item masters. Note that for each drop ship line item on the Sales Order, you need to tag the Vendor dimension.
Go to Order Entry > Sales Order > Add.
Upon posting the Sales Order, the system will automatically generate one or more purchase orders for the drop-ship line items against the tagged vendors. This drop ship workflow process eliminates the need to manually create the Purchase Order. The customer Ship to contact from sales order will be used as the Return to contact in the corresponding purchase order and the payment Date due field will be populated based on the AP term.
These sales and purchasing
transactions will further proceed with the flow defined for sales and
purchasing in the system.
The sales order will be converted to a sales invoice which will be sent to the Customer. The customer will in turn send the payment to your company which will be processed based on the Account Receivables defined workflow, whereas the Purchase order will be approved (if approval policy is set up) and then sent to the Vendor. The vendor will ship the items directly to the customer. When the Vendor sends the bill to your company, the bill will be converted to a Vendor Invoice and the established Accounts Payable process will further apply.
Within a Sales Order there can be some items which are to be drop-shipped and some are not. In such cases, the “buy to order” items are delivered to your Company who will process the shipping to deliver the order to specified Customer and the drop-ship items are directly delivered to the Customers by the Vendors.
Furthermore, there is a Drop-Ship History object available for reporting purpose. Through this object you can pull a custom report of your drop-ship transactions.
Go to Platform Services > Custom Reports > Add > Select Drop Ship History object as the data source. See below.
In the next step, you can choose columns for your report from both, Order Entry Transactions and corresponding Purchase Order Transactions.
In further steps, apply summation, averages and other calculations can be added if any. And also sorting and filtering can be applied based on the need.
With this report you can track and compare both Sales and Purchase transactions in one single view. This saves much time and effort rather than tracking every transaction manually and matching the Sales and Purchase prices. Also, the report can be exported in excel or other formats if required.