Drop Shipments
In a drop shipment, your vendor ships the item ordered directly to your customer. You do not receive the item in your business at all. Your vendor will, however, invoice you for the item, and you in turn invoice your customer. When you invoice your customer, you indicate in the Ship To Address window that this sales invoice is a drop shipment. You must also enter a purchase with your vendor, indicating in the Ship To Address window that this purchase is a drop shipment. How do I track drop shipments from vendors?
If you are using inventory items, you can track this process most effectively using purchase orders and sales orders. You can show the open order from your customer on a sales order and the open purchase order to your vendor that requested a drop shipment. Once your vendor has actually shipped the item and invoiced you, you then “receive” the item. Sage 50 adds the item to your inventory. Now, you invoice your customer by “shipping” the item from the sales order and sending the invoice.
The Drop-Ship Process
What do you want to do next?
- Enter a product invoice
- Enter a service invoice
- Memorize existing sales invoices
- Use memorized sales invoices
- Select a sales invoice template
- Enter a manual invoice
- Preview a sales invoice form before printing it
- Print an invoice
- Print items without quantity or amount on an invoice
- Edit or delete an invoice with a receipt
- Void an existing invoice
- Enter and process customer credit card payments
- Look up the current payment status of a sales invoice
- Set up a customer
- Perform other accounts receivable tasks