Drop Shipment


What is Drop Shipment? In our axapta Drop shipment is belongs to which module?And in ax documents where can i found it about the drop shipment?

Drop shipment means that you do not purchase goods to keep them in stock and then ship them yourself to a client; instead, you place the purchase order with direct delivery to your client who ordered the goods.

To achieve this: create a sales order and then click Functions / ‘create direct delivery’. ‘Include’ the lines you want to create the purchase order for in the next form, make sure there is a vendor account assigned to each such line, and click ‘ok’. Ax then will create one or more purchase orders for you (depending on how many different vendors you assigned the lines to - can’t remember of the top of my head if there are more criteria to split the purchase orders on).

When you look at the created purchase order, you’ll notice that the delivery address is that of your client instead of your own company. Posting a packing slip for the purchase order should automatically post a packings slip for your sales order as well, etc.

You should find information on this in the Trade & Logistics documentation.

Hope this helps.

Thank you Krista.

Hello, on a related note, could you happen to know how to create blanket shipment - here, the company act as a vendor, who will then deliver the goods to the customer’s end user (on behalf of your customer).

In the drop ship - your vendor is delivering the goods on your behalf directly to the customer

in the Blanket ship, you act as a vendor, where you deliver the goods to the customer’s end user.

In AX its called Direct Delivery.

Hello, thanks for the information. I have a related question. we place the order with the manufacturer, and they deliver the items to our customer. So we don’t stock any items - we sell hardwares as well as software products. so the process is as follows:

Customers orders (and some cases pay upfront and/or net 30) for items from our product catelog. (we generate quote/invoices in our front end system CRM for the customer) and upon receipt of payment or PO terms, we submit order with manufacturer who in turn ship direct to our customer. we have net 30 pay terms with manufacture (vendor).

How could we handle this in AX 2012 R3.

We could create SO (or integrate CRM with AX) and as you suggested use direct delivery option to drop ship

but the items are not stocked. Ok, I tried to create a non-stocked item! few issues and questions I ran into…

  1. could we accrue liability on item group?

  2. AX is require dimension groups - why would it require tracking/storage dimension. Perhaps product dimensions not defined! or do we still need to create dummy inventory dimension even though this item is not stocked?

  3. From vendor PO to Invoice process steps, once after the PO is created and sent to vendor, do we need to perform “receive product” step — when item shipped to customer and then proceed to “create vendor invoice” when vendor sends us the invoice!

any thoughts are greatly appreciated.

You should post this as a new post - not add it to an answered post.

I would use items for drop ship processing, they are items. The concept is you can stock them, some vendors may ship direct an future one to you.

You can accrue liability as per any normal stocked item (another reason to stock it)

You set the dimension groups as you require like any other item - AX forces you to do nothing different here in the drop ship process.

One the vendor tells you they have shipped it you receive the PO which ships the sales order. If the vendor never tells you then you will know when the invoice arrives and then you process depending upon your configuration.

Using a stocked item makes more sense in the scenario and gives you full inventory control - as the system never stocks it in these processes (it is an in and out) it does not matter to you.

Thank you Adam. that’s what I come to conclusion and appreciate you confirming that. cheers

I have a question about Drop shipment from another point of view…
How can I use AX 2009 in situation when I am the company who sells goods and should send them directly to my customer’s client?

You can use feature called direct delivery for that.