Drop Shipments In Navision

Creating Drop Shipments

A drop shipment is the shipment of an item or a consignment of items from one of your vendors directly to one of your customers.
Before you can use this feature, you must first set up the customer, vendor and item cards necessary to the order.

Fig: Flow Of Drop Shipment

To Create Drop Shipments:

Fllowing steps shows how to do the Drop Shipment via Navision

1)Create and fill in a sales order for the item

1. Open the Sales Order(Sales & Marketing–>Order Processing–>Orders) window.
2. Press F3, and then press Enter to create a new order with a new document number, or enter a number manually in the No. field.
3. Click the AssistButton in the Sell-to Customer No. field to see the Customer List window. Select the customer that is to receive the item, and then click OK.
4. On the first sales line, in the Type field, click the AssistButton and select Item.
5. In the No. field, click the AssistButton to see the Item List window. Select the number of the item to be sold, and then click OK.
6. On the sales line, in the Purchasing Code field, click the AssistButton to see the Purchasing Codes window. (The Purchasing Code field is not shown in the standard layout. To insert this field, use the Show Column function). Select a purchasing code that has a check mark in the Drop Shipment field and click OK.
7. Fill in the remainder of the information to complete the sales order.

2)Create and fill in a purchase order for the item

1. Open the Purchase Order(Purchase –> Order Processing–> Orders) window.
2. Press F3, and then press Enter to create a new order with a new document number.
3. In the Buy-from Vendor No. field, select the vendor that will ship the item, and then click OK.
4. On the Shipping tab, in the Sell-to Customer No. field, enter the number of the customer that is on the sales order.
5. Click Order, Drop Shipment, Get Sales Order. The Order – Sales List window appears.
   Select the sales order that you will use to create the purchase order, and then click OK to create the purchase order.

Note
The sales order line on the sales order must have a purchasing code of Drop Shipment.
If item tracking was assigned on the corresponding sales order, the Get Sales Order function will also copy the item tracking lines to the newly-created purchase order. You can view them under Line, Item Tracking Lines.
You cannot post a drop shipment order that has item tracking unless item tracking is synchronized – serial numbers and lot numbers must be the same – between the two related orders.

3)Receiving & Invoicing against the Drop Shipment

1. After you have released the purchase order, you must wait until the vendor informs you that the items have been shipped to the customer. You can then post the sales order. On the Sales Order window, click Posting, Post. Then select either Ship (to invoice it later) or Ship and Invoice (to invoice it immediately).
2. After you have posted the sales order as shipped, you can also post the purchase order as received. If the sales order has been invoiced, you can also invoice the purchase order.

Note:
You cannot post the sales order until it has been linked to a purchase order.
You can post the purchase order immediately or at a later date. When posting, you can only select Receive, because the linked sales order must be invoiced before you can invoice the purchase order.
If item tracking was assigned on the corresponding sales order, the Get Sales Order function will also copy the item tracking lines to the newly-created purchase order. You can view them under Line, Item Tracking Lines.
You cannot post a drop shipment order that has item tracking unless item tracking is synchronized – serial numbers and lot numbers must be the same – between the two related orders.