Selling a Drop Ship Item
A drop ship item is sold using a sales order. When you approve the sales order, NetSuite generates a purchase order for the preferred vendor that shows the customer's shipping address. Drop ship items ship directly from your vendor to your customer. You can drop ship inventory items and non-inventory for resale items.
Sales orders are created automatically when a customer orders drop ship items from your web store. You can also manually create sales orders. You can set items to drop ship automatically or manually.
To automatically drop ship an item:
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Go to Lists > Accounting > Items.
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Click Edit next to the item you want to automatically drop ship.
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On the item record, check the Drop Ship Item box.
After the item is entered on a sales order and approved, NetSuite generates a purchase order.
To manually drop ship an item on a new sales order:
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Go to Transactions > Sales > Enter Sales Orders.
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In the Custom Form field, choose one of the following:
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Enhanced Sales Order - Progress Billing
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Standard Sales Order
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Standard Sales Order - Cash Sale to record check or credit card information before shipping
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Standard Sales Order - Invoice to arrange terms for payment after shipping
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Standard Sales Order - Progress Billing to invoice your customers for orders in stages
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Select a Customer or job.
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Verify or enter the Date.
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Select a Status from the list.
Select Pending Fulfillment to skip the sales order approval process to create the purchase order when the order is submitted.
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Enter any additional information necessary.
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On the Shipping subtab, in the Ship To field, verify the customer's shipping address.
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On the Items subtab, select an item. If the item's record is marked for drop shipment and has a preferred vendor, the Create PO field defaults to Drop Ship.
If the item is not marked for drop shipment, the Create PO field is dimmed and uneditable.
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Enter the item quantity.
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Accept or change the default information.
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Complete any custom fields.
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Click Add.
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Repeat steps 8-12 for each additional item.
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Click Save.
When the sales order is approved, a purchase order is generated for drop ship items.
To generate your drop ship purchase order based on a custom form, you must link you sales order form to your custom purchase order form. For more information, see Linking Transaction Forms.
You can drop ship items on an existing sales order if the item has not yet been fulfilled. You can set specific items to drop ship whether the sales order has or has not been approved.
To manually drop ship an item on an unfulfilled purchase order:
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Go to Transactions > Sales > Enter Sales Orders > List.
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Click Edit next to the order that contains the unfulfilled item you want to drop ship.
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On the Shipping subtab, verify that the sales order shows the correct customer shipping address.
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Click the item you want to drop ship.
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Click the Items subtab.
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In the Create PO column next to the item, select Drop Ship.
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Click Done.
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Repeat steps 4 - 6 for unfulfilled items you want to drop ship.
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Click Save.
If a sales order is approved, click the Drop Ship button to drop ship all inventory items and non-inventory for resale items on the order.
To drop ship items grouped by vendor on an approved order:
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Go to Transactions > Sales > Enter Sales Orders > List.
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Click View next to the sales order.
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On the Shipping subtab, verify that the sales order shows the correct customer shipping address.
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Click the Items subtab.
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In the Create PO column next to the item, click Drop Ship.
A purchase order is created for any unfulfilled inventory items and non-inventory for resale items.
A purchase order is created for one vendor at a time. To drop ship items on this order from a different vendor, after step 7 click Drop Ship.
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Verify that the purchase order is correct.
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Click Save.
The sales order opens and the Create PO column displays the number of the purchase orders created.
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If there are more items on the sales order that you want to drop ship, repeat steps 5 - 7.