Drop Ship Items

When you drop ship an item, the item is sent directly from your vendor to your customer. The item is not processed in your inventory. Drop shipments streamline your inventory by keeping a low inventory asset total and reducing the order-to-delivery cycle time.

Because drop ship items are not received into your inventory, they do not impact your inventory asset accounts or affect your stock count. You can drop ship inventory items and non-inventory for resale items.

You can set items to drop ship by default, or manually on sales orders. To set an item to drop ship by default, mark the item record as a drop ship item. Then, each time the item is entered on a sales order, it is always set to drop ship. When the order is approved, a purchase order is automatically generated. For more information, see Marking an Item for Drop Shipment.

After the drop ship purchase order is generated and approved, you can choose your preference for how to send it to the vendor. You can choose to queue the purchase order for printing, or to automatically email or fax it to the vendor.

If an item is set to drop ship and a preferred vendor is selected, note the following. The approved order can automatically create a purchase order showing the preferred vendor for the item and the customer's shipping address.


If you do not use the Multiple Vendors feature, select a preferred vendor on the Basic subtab of the item record. If you use Multiple Vendors, check the Preferred box next to the vendor.

If your customers order drop ship items from your web store, sales orders are created automatically.

Receipt of Drop Ship Items

Items that are drop shipped are not intended to be received into your inventory. However, if you click Receive on a drop ship order line, the item is received into inventory and is not considered a drop shipment. Receiving an item against a drop ship purchase order creates an inventory asset accounting transaction.

Drop ship items do not show as a committed quantity in the linked Sales Order transaction. For more information, see Fulfill and Receive Drop Ship Items.

Special Orders

For orders that must track information about items that are not standard stock, you can choose to special order items. Like drop shipments, special order items are purchased to fill a specific order. Unlike drop shipments, special orders are intended to be received into your inventory from the vendor. Special Orders are a function of the Drop Shipments and Special Orders feature. For more information, see Special Order Items.

Related Topics

Setting Up Drop Shipping
Viewing a Drop Ship Item
Selling a Drop Ship Item
Item Records for Data Tracking
Groups, Assemblies, and Kit/Packages
Item Groups
Kit/Package Items
Matrix Items
Serial Numbered Items
Lot Numbered Items
Customizing Lot or Serial Numbered Item Records
Gift Certificates
Inventory Items
Service Items
Download Items
Discount Items
Subtotal Items
Description Items
Markup Items
Expense Items
Non-Inventory Items
Other Charge Items
Payment Items
Item Types

General Notices