When using a drop ship warehouse proper procedure is to create a Sales order which places a Purchase order then once the AP Invoice is entered closing the Purchase order. At that time, an AR Invoice closing the sales order should be created on the same posting date so that Sales Revenue and Cost of Goods Sold are recognized at the same time for accrual accounting.
When using a drop ship warehouse SAP is very good about prompting for a PO to be made for Sales Orders that are entered but there is no trigger, that I have found in the system, which tells you to convert the SO to an AR Invoice when the PO is converted to a AP Invoice. This seems like missing functionality to me, am I wrong? We are about to build a custom query to check for drop ship warehouse Purchase Orders which are closed and have a Sales Order they are linked to which is still open. Do we really have to do this or is there a puzzle piece I we are missing? Everyone must have this same issue if they follow accrual accounting.
FYI keep in mind we maintain a warehouse with inventory and a drop ship warehouse, not just one warehouse.
Thanks,
Chris