Making Drop Shipments in Business Central

Posted on: December 11, 2022 | By: Jim Bertler | Microsoft Dynamics Business Central

A drop shipment is a type of order fulfillment where the supplier ships the product directly to the customer, rather than the retailer holding inventory and fulfilling the order themselves. This can be an efficient and cost-effective way for retailers to do business, especially if they are working with a large number of suppliers or offering a wide variety of products. In this blog post, we’ll take a look at how to set up and manage drop shipments in Business Central.

First, let’s define some terms. A drop shipment is typically initiated when a customer places an order with a retailer. The retailer then creates a sales order in Business Central and assigns it to a supplier. The supplier then ships the product directly to the customer, and the retailer is responsible for billing the customer and handling any returns or customer service issues.

To set up drop shipments in Business Central, you’ll first need to create a new vendor for each of your suppliers. This will allow you to track each supplier’s inventory levels, lead times, and other important information. You can do this by going to the “Vendors” page in Business Central and clicking the “New” button.

Next, you’ll need to set up a purchase order for each of your suppliers. This will let you specify the products you want to order and the quantities you need. You can do this by going to the “Purchase Orders” page in Business Central and clicking the “New” button.

Once you have set up your suppliers and purchase orders, you can start creating sales orders for your customers. When creating a sales order, you’ll need to specify which supplier you want to use for each line item. This will allow Business Central to automatically create a purchase order for the supplier and manage the drop shipment process.

When the supplier ships the product to the customer, you’ll need to mark the purchase order as “received” in Business Central. This will update the inventory levels and trigger the billing process.

Managing drop shipments in Business Central can be a great way to streamline your order fulfillment process and save time and money. By setting up your suppliers and purchase orders correctly and keeping track of your sales orders, you can ensure that your customers receive their orders quickly and efficiently.

Next Steps

Logan Consulting, a proud partner of Microsoft, helps set clients up with systems built to optimize their daily operations and improve performance. Contact us today to learn more about how we can help you.



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