1. Outbound Inventory Management Implementation Guide
  2. Understanding Outbound Inventory Direct Ship Orders

Understanding Outbound Inventory Direct Ship Orders

An outbound inventory direct ship order is the sale of an item that you purchase from a supplier, who then sends the item directly to your customer. You enter into an outbound inventory agreement with your customer to maintain inventory at their location, but you complete the order through another supplier. The supplier ships the inventory directly to your customer's location from their warehouse.

Outbound inventory direct ship orders enable JD Edwards EnterpriseOne users to maintain ownership while providing outbound inventory management services to their customers. The following graphic illustrates the business process flow for outbound inventory direct ship orders:

Outbound Inventory Direct Ship Orders

When you enter an outbound inventory direct ship order, the system simultaneously creates a sales order for the customer and a purchase order for the supplier. The purchase order alerts the supplier to ship the item directly to the customer. When you release a sales order against the direct ship quote, the system creates a purchase order.

When you set up line types for direct ship orders, you must define the inventory interface for direct ship orders as D and select the Edit Item Master for Non-Stock Item option. During direct ship order entry, the system verifies outbound inventory agreements in the Outbound Inventory Agreement Master table (F42I010), the item number in the Item Branch File table (F4102) and the cost and price information in the Item Cost File (F4105) and Item Base Price File (F4106) tables. For outbound inventory direct ship orders, the system updates the item ledger when the inventory is received at the customer's location.

The program creates records in these tables:

  • Sales Order Header File (F4201)

  • Sales Order Detail File (F4211)

  • Purchase Order Header (F4301)

  • Purchase Order Detail File (F4311)

When you change information on either the sales order or the purchase order, the system updates the corresponding order with this information:

  • Promised delivery date

  • Quantity ordered

  • Primary unit of measure (changes purchasing unit of measure)

  • Weight and volume (when a change is made to quantity)

  • Unit price

You enter an outbound inventory direct ship order in the same manner that you enter a regular outbound inventory order. You can use Create Direct Ship Orders from the Outbound Inventory Management menu (G42I). You can also use the Create Direct Ships or Update Direct Ships selections on the Sales Order Processing menu (G4211).