Drop Ship Sales Order

[Former Member]

I am entering a SO and trying to create a drop ship PO. I would think that if I mark the "Purchase Order" box on the SO Logistics tab that when the PO is created it would use the ship to address of the customer from the related SO. This is not the case in my experience.

From what I have read on the forums it seems the best way to handle drop ship PO's for customers is to create a drop ship warehouse. Then I guess you are suppose to change the ship to address to the customers address manually on the newly created PO.

Is this a correct understanding of B1 drop ship PO's?

[zal_parchem2 · Accepted solution]

hello Robert - you are on the right track...

the most important for you is to first set the drop ship warehouse...

then use the "Form Settings" icon to put the warehouse field on theSAP B1 Sales Order window (don't forget the Sales Quotation, and other AR documents folks use to create orders/invoices)...

when it comes time to create a drop ship sales order, the person should select the drop ship warehouse on the individual line of the order and the system takes over from there...

we have set up products as drop ship (sales and purchase boxes checked on the Item Master Data) and connected preferred vendors also...

one tip for the user - after they have created the sales order and purchase order, make sure they cross-reference the items in the remarks (ie in the Sales Order Remarks field something like "DS Sales Order has PO 342 for processing" and DS Purchase Order has SO 1238 for processing". We always do that just to make sure everyone can trace adequately.

In the documentation section of SAP there is a user guide called "How to Create Drop Ship Sales and Purchase Orders" from February 2009...

Happy Drop Shipping - Zal

[Former Member · Accepted solution]

Just be aware that there will be no cost associated with the Sales order so the gross profit will show 100% if you use an item from stock.

[Former Member · Accepted solution]

Thank you very much for all the information. I will do my best to locate the documentation you mentioned. However, I still have one question.

How does my customers ship to address get onto the PO that is created from the sales order?

I do not want to create 20 different drop ship warehouses with different addresses for my 20 something customers that order via drop ship.

[zal_parchem2 · Accepted solution]

Robert - the SAP user guide is a bit thin on the full workings and flow of information of drop-ship, so try it in your Test System to get a good feel for it to see what happens in various scenarios...(for example, what M Jenkins mentions above about items with the Inventory Box checked on the Item Master Detail - unchecked is what "defines" a product as drop-ship)...

Customer address is automatically presented from ship-to address you select (or your system defaults to) on Sales Order...

And one other point - if you want the SALES personnel to create real (non-draft) drop-ship purchase orders, make certain they have the correct authorizations set...

For us, the most important point was the cross-reference remarks...

Zal

[Former Member · Accepted solution]

ok, let's try this one last time. Thank you for all the drop ship PO information provided and the link to SAP instructions. However, I STILL have a question regarding the ship to address used on the PO. I have tested this process in the test company and it doesn't function as I believe it should, but perhaps I am doing something wrong or missed something in the setups. Here is the scenario in its most basic form.

Drop ship sales order is entered for customer XZY.

Customer's ship to address is in California.

I have one drop ship warehouse with address of let's say Texas and this warehouse is selected on the sales order.

Drop ship sales order is then converted into PO.

Ship to address on PO reflects Texas address of warehouse.

If user does not remember to change address the product will be shipped by the vendor to the Texas address and not to the true ship to address in California. Is this how B1 works? Am I missing something? Why wouldn't B1 put the ship to address from my drop ship sales order on the PO? Requirinig end users to always remember to change the ship to address on the drop ship created PO is not reliable method.

I would appreciate it if someone could address this issue and only this issue. Thanks.

[Former Member · Accepted solution]

I believe the address is place on the PO when the user selects the dropship warehouse and performs the Back-to-Back PO.

We built an alert to advise purchasing department whenever a Dropship order is entered so they can verify the address, price and delivery information. It runs every 5 minutes to make sure we catch it before the PO is transmitted.

[Former Member · Accepted solution]

Thanks M.Jenkins! Not the answer I wanted to hear, but at least I now know of a workaround.

[Former Member]

Check this Document on

[How to Create Drop Ship Sales and Purchase Orders|https://websmp201.sap-ag.de/~sapdownload/011000358700004565952005E/How_To_Drop_Ship.pdf]