Sales Order - Drop Shipments

Kinetic ERP
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1

Hello,

Looking for advice on how others handle drop shipments on Sales Orders. How do you link the sales order to the purchase order and identify that it is a drop shipment? How do you handle invoicing these orders and adding freight, that gets passed through to the customer?

Thank you,
Lisa

2

Hi Lisa,

When we do drop shipments, the Drop Ship checkbox must be checked on the Sales Order release tab:

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Then when the PO is cut, your buyer needs to put in the Sales Order number, Line and Release:

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This is what links the PO to the Sales Order. When the item is received, the receipt entry is done under Drop Shipment Entry, not Receipt Entry. If the receiving person tries to do it under Receipt entry, it will display a message. Once that is done, the system will automatically create a “shipment” to the customer behind the scenes so that it appears in Invoice Entry when you Get Shipments.

As for Freight Charges, I’m not sure how we bill those because we receive the cost of it after the freight arrives. Most likely it is a miscellaneous charge.

3

This is very helpful! We will test this. I knew we were missing something! Thank you.

1 Like
4

Most of our customers ask we use their account so freight generally isn’t a problem for us. When we do have to do it, we add it as a miscellaneous charge on the drop ship line (we don’t do multiple releases on drop ships). When the drop ship line is processed, then the freight gets billed to the customer. This is especially helpful on the credit card orders.

Our drop ships are from other companies in our organization, so we get the freight information in a timely manner.

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5

How do you guys transfer the customer’s collect account information to the PO? We are having some process issues with trying to figure out the best way to do this and are looking for what works best for other companies.

6

I’m no longer working for that company. At the time I left, they were putting that information in the notes of the PO, and the other company was putting that into the sales order.

7

Okay thank you Doug,

That is what I’ve suggested our team do as well.