Question: How can I properly close a shorted drop-ship order (e.g., your supplier only ships 18 units on a 30 unit drop-ship order)?
Answer: Perform the following steps:
Reconcile the purchase order for the amount the supplier actually shipped, and invoice the sales order, as normal.
Reconcile the purchase order again. This time, click the As Is button in the ribbon in A/P PO Reconciliation.
Enter 0 in the Voucher Quantity and Pay Qty grid columns.
Select the Fully Invoiced check box. This will mark the purchase order as fully invoiced unless you have additional charges that must be also reconciled.
Click the OK button in the ribbon.
In Voucher Entry, click the Enter Invoice button in the ribbon. The Question dialog box appears, and asks you to confirm whether you want to create a voucher with zero cost.
Click the Yes button. The voucher is created, and a zero quantity pick demand is generated.
Inventory adjust the zero quantity pick demand, and then invoice it. This will create a 0.00 invoice and close out the order.
Question: How do I add or modify line items on a drop-ship purchase order?
Answer: To include multiple line items on the same drop-ship purchase order, the line items must all be entered on the sales order before creating the drop-ship purchase order. After a drop-ship purchase order is created, line items must be added or modified manually.
If the drop-ship purchase order was already created, the following options allow you to add or modify line items:
If you want to update the quantity of line items on a drop-ship purchase order, first edit the quantity on the sales order in Order Edit. You can then update the purchase order to match the sales order in Purchase Order Maintenance.
If you want to add a line item to a drop-ship purchase order, void the drop-ship purchase order in Purchase Order Maintenance. Then, go back to the order in Order Edit and edit it to reflect the line items that you want to appear on the drop-ship purchase order. Finally, create a new drop-ship purchase order for the order in Drop Ship and Special Order Create.
Question: How do I process a returned drop-ship order?
Answer: Due to the nature of drop-ship orders, there are two sides that you must consider when refunding a return. You must ensure that the drop-ship purchase order is fully vouchered and closed, and that the drop-ship sales order is invoiced and closed as normal.
Purchase Order Side: If the purchase order was vouchered and paid, and since the drop-ship purchase order is returned back to the supplier, you must create an accounts payable debit memo (DM) to record that the supplier owes you money. When you originally created a voucher for the purchase order, the voucher posting debited the accounts payable account and credited the drop-ship cost of goods sold (COGS) account. Thus, you must create an accounts payable debit memo voucher for the amount of the original accounts payable voucher, and select the expense account on the voucher to be the drop-ship COGS account. When you post the debit memo, the drop-ship COGS account and the accounts payable accounts should both then be correct. If you have not already paid the supplier, you can simply select the original accounts payable voucher and offset it with the accounts payable debit memo that you just created.
Sales Order Side: The easiest way to ensure that the drop-ship sales account is properly affected for the price-only return of the customer's drop-ship sales order is to create a new return code that you can use when entering the return order. When setting up the new return code in Return Code Maintenance, ensure that the sales returns account is set up as your drop-ship sales account (you do not need to enter the other general ledger accounts for the return code if you want to use the default return accounts). Then, when you create a price-only return order, select the new return code and post the invoice. The drop-ship sales account should then be changed by the amount of the return.
You can associate the invoice number of the drop-ship sales order with the return order and add a note to the purchase order to indicate that it was returned.