Drop Shipping Preferences

Set the following preferences for processing drop-ship orders.

Update Drop Ship Order Quantities Automatically Prior to Shipment

NetSuite verifies that the sales order and linked purchase order quantities match for drop-ship items. If the quantities are not equal, you can opt to automatically adjust the quantities to be equal.

• Enable this preference to automatically update the quantity of a drop-ship item on linked transactions when a sales order or purchase order quantity is changed. When the amounts on both linked forms do not match, the quantity and price are updated to match.

  For example, yesterday you entered sales order #1001 that sells a quantity of 5 of a drop-ship widget. Purchase order #9876 was created to drop ship the 5 widgets at a cost of $10 each, $50 total. Today, you edit sales order #1001 to increase the quantity of drop-ship widgets to 10.

  Because purchase order #9876 is linked to the sales order, a validation is performed to be sure the amounts match. When the sales order is changed, the purchase order quantity is automatically updated to a quantity of 10 units with a total cost of $100.

  This update is performed only before any fulfillments or receipts are entered against the order.

  The quantity is updated only if it is changed. For example, you can have a sales order and linked purchase order with quantities that do not match because this preference has been enabled. If you edit the memo on the sales order and save it, the purchase order quantity is not updated to match the sales order quantity. You need to edit the quantity on the sales order for the purchase order update to occur.

• Disable this preference if you do not want to update the quantity of a drop-ship item on linked transactions after a change. Then, even if the amounts on both linked forms do not match, the quantity and prices remain unchanged and are not updated to match.

  Important:

  When the sales order and purchase order quantities do not match, the item is no longer treated as a drop shipment. Your inventory might be affected.

This preference applies only if the following conditions are met:

• The sales order line has not been fulfilled.

• The purchase order line has not been received or marked shipped.

• Neither the sales order or purchase order line has been manually closed.

This preference defaults to be disabled.

Drop Ship Fulfillment Quantity Validation

If you also use Advanced Receiving and Advanced Shipping, you can receive a warning when you fulfill or receive orders. You can also prevent users from processing orders with unequal amounts.

For example, sales order #1001 shows 5 widgets, but the linked purchase order shows 10 widgets. When you try to fulfill sales order #1001, you can receive a warning or disallow fulfillment for the order because the quantities do not match.

Note:

This preference applies only to inventory and assembly items.

Choose a setting for handling unequal quantities on linked sales orders and purchase orders that include drop-ship items:

• Allow unequal quantities – This setting lets you fulfill without a warning, even if linked transaction quantities are not equal.

• Warn only for unequal quantities – This setting causes a warning to be displayed when you fulfill orders for linked transactions that have unequal quantities. This setting does not prevent processing after the warning is shown.

• Do not allow unequal quantities – This setting prevents you from fulfilling and when linked transaction quantities are not equal.

If this preference is set either to warn or allow, transactions with unequal quantities remaining are fulfilled from inventory.

This preference defaults to use the Warn only for unequal quantities setting.

Allow Both Mark Shipped Fulfillments and Receipts on a Drop Shipment Line

If you also use Advanced Receiving and Advanced Shipping, you can choose a setting for handling receipts and mark-shipped fulfillments with drop-ship orders. Orders that include a drop-ship item can be filled in one of two ways:

• Mark Shipped Orders – Fill the order by drop-shipping the order from the vendor and clicking Mark Shipped to show the order has been filled.

  An order is considered a Mark Shipped order in the following condition. The order is fulfilled or marked shipped as the first step after the purchase order for the drop ship sales order is created.

• Received Orders – Fill the order by clicking Receive to receive the item into inventory and then fulfilling the order through the regular inventory process.

If a drop-ship order is not yet filled, both options appear on the Receive Orders page. However, after you process items on the order, you can warn or disallow users if the same process is not used going forward.

The Receive Orders page is located at Transactions > Purchases > Receive Orders.

• When you enter a receipt, if the linked purchase order has a mark-shipped fulfillment line entered against it, you can receive a warning. You can also prevent processing.

• When you enter a fulfillment, if the linked purchase order has a receipt entered against it, you can receive a warning. You can also prevent processing.

For example, you process drop-ship items by clicking Mark Shipped. You then click Receive on that order. You can get a warning that items on the order have already been marked shipped, or disallow items on the order to be received.

Note:

This preference applies only to inventory and assembly items.

Choose one of the following preference settings to determine how transactions are processed:

• Allow:

  • Create a receipt against a drop-ship purchase order line that already has a mark shipped fulfillment line without any warning.

  • Create a mark-shipped fulfillment against an order line that already has a receipt entered against it without any warning.

  Note:

  Drop shipment items that are received into inventory have accounting impact and are committed to orders when they are received. Creating these transactions might cause imbalances in quantities and accounts.

• Warn only:

  • Warns you when you try to create a receipt against a drop-ship purchase order line that already has a mark shipped fulfillment line. The warning indicates that creating these transactions has an inventory impact.

  • Warns you when you try to create a fulfillment against an order line that already has an item receipt with inventory and accounting impact entered. The warning indicates that creating a mark shipped fulfillment against this order line could cause imbalances in quantities and accounts.

• Do not allow:

  • Prevents you from creating a receipt against a drop-ship purchase order line that already has a mark shipped fulfillment line.

  • Prevents you from entering a fulfillment against an order line that already has an item receipt with inventory and accounting impact.

  If an order is received as the first step after the purchase order for the drop ship sales order, you cannot click Mark Shipped.

  After drop-ship items on an order have been received, you can change the quantity, but you cannot mark items shipped on that order.

This preference defaults to use the Warn only setting.

Related Topics

Setting Up Drop Shipping

General Notices