Did you ever have a sale in which you bought items from a vendor but did not need to ship them directly to your customer? Drop shipping is what you might have encountered. This article will show you how to set up drop shipping in Dynamics 365 Business Central (D365 BC).
What is Drop Shipment?
Dropshipping is when a customer initiates an order and the items are shipped directly from the vendor to the customer. They do not need to be stored at a company warehouse or location. We are buying directly from the vendor, and then shipping directly the customer based upon the order.
Establish a drop shipment
Before preparing a drop shipping order, the user must create a sales order from a customer order and indicate that it is a drop shipment on the sales line.
When creating a sales order, the user can specify drop shipment for each item. If more than one item is required to be shipped, it will also be noted.
Drop shipment fields that are not available in your area can be added. Click the gear sign in the upper right corner and click personalize to add drop shipment.
Make a Purchase Order. Link to Sales Order
Once the sales order has been created, create a purchase or that will be linked to it. The user can then ship the invoice and send the money. First create a purchase or order to link. Once the vendor has been selected, the user can then ship and invoice the item to the customer.
Next, link the purchase order to retrieve the sales lines.
Select the appropriate sales order for drop shipment
The purchase order will also include the same sales lines as the sales order.
Notify the system if your sales order does not include a drop shipment.
Since the purchase order and sales order are linked together, shipping on the purchase orders will result in the sale order also receiving and vice versa. It is acceptable to ship or receive on any order. Dynamics 365 Business Central requires that the sales order be invoiced before the purchase order is placed.
After the order is invoicing correctly, drop shipping can be completed. The items will then be shipped directly from the vendor for the customer’s receipt.
How do you work with drop shipments in Business Central
Dropshipping is when an item is shipped directly from the vendor to the customer and the item does not return to your warehouse. You will be delivering the items.
We create a sales order with the customer for the item they would like to buy.
Refer to the item line.
This line is marked as a drop shipment line.
This is done by setting a mark for drop shipment or a purchasing code.
You can add the drop shipment code to your sales order if it is not displayed.
This can be done in the Personalize menu.
The sales order is now complete and it’s ready for the purchase order to follow.
We enter purchase orders and create new.
We select the vendor number from which we will purchase the item.
For this item to be considered the supplier, it must be the same vendor as the one listed on the item card.
Scroll down to the shipping tap. In ship-to we change the customer address. In customer we select the customer.
Now we can retrieve the lines from the sale order by going to actions, functions and drop shipment.
Now, you will see a list of all sales orders for this customer.
I sign the document I want to drop ship based on and press ok.
Now, the item line is transferred from my sales representative to my purchase order.
Now I can send the purchase order to my vendor.
Now, I can see the link between my purchase order and sales order.
This is done by marking the line, going into order, dropping shipment, and placing a purchase order.
Here is the link to my sales order.
I can send my sales order just like I would normally.
You can also send the purchase order, but you must use the receipt option until your sales order is invoiced.
