Back-to-back-order or Drop Shipment Setup in Sage ERP X3

By | February 21, 2013

In day to day life often it is the case when a company has to look for the drop shipment feature and it becomes a necessity to have the drop shipment in our system.

Before we proceed with this feature in Sage X3, let me explain you the Significance of Drop Shipment in brief;

  1. Delivery of product from a manufacturer or original supplier direct to a buyer, without passing through the warehouse of a distributor or retailer.
  2. Drop shipping also eliminates duplication of effort, since only one warehouse will pick, pack and ship the product. This approach can reduce total inventory management and shipping costs. These cost reductions can subsequently reduce the price to the consumer
    As seen above, significance are self-explanatory as why do people look for the Drop Ship feature in any ERP. As far as Drop Shipment in Sage X3 is concerned the terminology used for this is “Direct Order” or “Back to Back Order”.

To configure the Drop Shipment in X3 we need to do some settings which will enable this feature.

  1. On the products entry screen, under the Sales Tab mark the flag “Back-to-back order “(refer below screenshot).
    Drop Shipment Setup
  2. Next, you will also Mark the flag “Back-to-back order” under the supplier’s tab on the products screen (refer below screenshot)
  3. Now if the user creates a sales order with the Source of Shipment as “PO-Direct to Customers”  at the Line level [refer the screenshot below].
  4. After creation of sales order, click on “Back to Back option[refer the below screen shot].
  5. A purchase order will be created and you will get the Purchase order number in a log.
    Purchase order number in log

Hope this blog helps in understanding the Drop Shipment Concept in Sage X3!

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