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Drop Ship

Former Member
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Can some one explain tht drop ship process from a vendor to a customer?

Will I see the customer order on MD04 for that plant?

How is the PO created?

What transactions do I need to do in order?

Thanks

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Saad,

The way I understand the drop ship process, is that you create a Purchase Order which is to be directly delivered to the customer. This is accomplished by creating a purchase requisition in the system from the sales order of your customer. You can accomplish this in the item category configuration of the sales order (Create PO automatic flag).

Since this material is a non-stock item in your plant, I don't think it will be available in MD04.

Hope this helps.

B.P

Answers (2)

Answers (2)

Former Member
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Sales order is created with item category TAS. This creates purchase req when sales order is saved. Purchase req is converted to PO and sent to vendor. Vendor ships item to customer. Vendor bills company, when payable is processed copy rules allow order to be invoiced to customer. This process does not affect company inventory

Former Member
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Hi,

a. The customer places an order with a distributor , in turn the distributor initiates the shipment process by informing the Wholesaler and bills the customer. This process is called drop shipment.

In short Transfer of goods from a Manufacturer or Wholesaler to a third party customer through an itermediate person or distributor.

b. Yes, you can see "Customer Order" but the terminology will differ we will be seeing it as "cust. Independent requirements"

c. 1. P.O can be created using me21n/me21

2. Through Sales Cycle, we should activate the indicator in "Item category" under "transaction Flow" data using Tcode VOV7

OR you can by creating New schedule line category and entering order type = NB, item category = 5, and Acct Assignment =X, thereby activating PR. Later with the help of PR we can create PO

d. OR(VA01) > PO (Me21n)>MIGO >VF01> VF02 --> MIRO

I hope it should help you...

Regards

Sathya