Drop Ship Order Entry Concepts
Planning to Use Drop Ship Order Entry
It is helpful to assign one or two employees the responsibility of entering drop ship orders. This should be a person(s) who is familiar with both the order entry and purchasing applications. When you create an order, a purchase order is automatically created. Therefore, an understanding of purchasing, such as preferred vendors, their pricing structures, special instructions, and so on, is extremely helpful.
Your order entry parameters should be set to the settings and defaults that are most appropriate for your business. There are also several parameters designed specifically for the drop ship order entry application. Before you begin creating orders in this application, you should set parameters in the (LG4) Drop Ship Order Entry Parameters and (LGF) Order Entry Parameters General screen.
When setting parameters in the (LG4) screen, there are three boxes for which you should make special considerations:
Default A/P G/L Reverse: Specify the default A/P general ledger number that is posted to accounts payable when the order is completed in drop ship order entry. This box is especially useful when posting to a separate G/L account. This allows you to track drop ship order costs separately from other vendor purchases.
Default Inventory Location: Specify a default inventory location for drop ship orders. The location you specify in this box lets you keep a record of items sold and allows you to track drop ship orders separately by printing an Inventory Usage Report.
Prompt for Updating Mfg Cost When Cost is Changed: Specify not to clear the purchase order number box when a drop ship line item is on a backordered ticket.
Additional parameters in the (LGF) screen let you customize how to handle individual line items. This includes the following fields: Enable, Password, Use Pick Cost, Update P Cost, and Use Item Up Cost %. For more details, see In the (LGF) Screen.
One parameter in the (LE1) Inventory Parameters screen affects line item drop ship quantities: the Track Drop Ship Sold Quantities field. To specify that the system track drop ship item quantities separately from regular item quantities, you must set this field to Y. For more details, see In the (LE1) Screen.
Finally, one box in the Vendor window lets you specify that the system allow you to fax P/Os that have not been previously faxed, but which are ended in the Purchase Order Entry window. To use this option, set the Comm box to Faxing. The system uses the fax number set in the Fax # box in the Vendor window as the default fax number. For more details, see Vendor.
See also:
How Drop Ship Orders Affect Purchasing
Understanding Drop Ship Order Entry Files