Question: Why should general ledger accounts be entered on the Receiving Accts tab in Location Maintenance for sales-only locations?
Answer: If accounts are not specified, drop-ship purchase orders may have invalid accounts. Specifically, accounts should be entered for the A/P, Drop Ship Cost of Goods Sold, Drop Ship In Transit, and Standard Cost Var (if using standard cost) fields. Because drop ships do not have inventory implications (i.e., products are not received into a warehouse or shipped out of a warehouse), the originating sales order’s sales location becomes both the bill-to and ship-to location of a drop-ship purchase order (even if it is a sales-only location). Purchase order account resolution is based on the ship-to location.