Dynamics GP has the ability to quickly process drop ship orders. Typically in a drop ship situation, your customer will place an order with you. You will then create a purchase order to your supplier and instruct them to ship the product directly to your customer. Once your supplier has shipped the product, you will enter the vendor’s invoice to accounts payable and invoice your customer. You can use this process on a single order basis or process orders in bulk. This is the process if you’re processing one order at a time:
I found it best to create a separate order type for drop ship orders that has the allocation option set to, “none.”
Enter the order from your customer and make sure to mark the Drop Ship check box. This will modify the shipping instruction on the purchase order to indicate that the vendor should send the product directly to your customer. Notice that the quantity fulfilled is o.
You can quickly create a purchase order for this sales order by selecting Actions >> Purchase. This will bring up the Purchase Order Preview screen. You can modify the attributes here if you want, or just accept the defaults that are based on your system setups.
This action will create a new purchase order. Once the shipment to your customer has been made by your vendor, you can enter the vendor’s invoice into accounts payable. This will update the sales order to indicate that the quantity ordered, has been fulfilled.
From this point you can process the invoice as you normally would; send the invoice to your customer, and post the invoice.
This is a quick video I created to show this in action: http://youtu.be/CsUvTiw2PtM