Inventory Management


We are new to NAV 2009.

I am reading different posts regarding the DROP SHIP and SPECIAL ORDER.

From what I understood, DROP SHIP is a direct shipment from Vendor to Customer, so it does not hit my inventory as technically goods are not coming to my warehouse.

But What about SPECIAL ORDER?

Since by SPECIAL ORDER, I am bring the goods to my warehouse as I want to be the shipper, does it hit my inventory when I post received? I read somewhere that it does not, so I got a little bit confused.

You kind reply is appreciated.

Thank you


It does.

Thanks David.

What about DROP SHIP? I read it does as well but it is IN and OUT at the same time. Is that correct?

Actually, we do not have any physical inventory and we do not want to create inventory for what we never own during the process of buying and selling. The reason I am studying about DROP and SPECIAL is that, DROP does not let you undo the Receipt and it will cause a lot of problem for us, so if both DROP and SPECIAL hit inventory and it is just the matter of how and when they do, then I prefer to use SPECIAL because at least it is more felexible.

Could you kindly explain the differences in terms of transcations in the background, because in terms of concept I know what they mean? Thanks

In both the cases Inventory will hit .

In Drop shipment physical inventory will not hit but in system it will hit the inventory

Special order is nothing but Back to Back order .It means For special sales order you created special purchase order and whatever material received against this Purchase order will be used for that special order as it is linked