Use an eligible drop-ship item on a Sales Order, confirm the line’s Create PO value is Drop Shipment, then save and complete any required approval. Follow the generated purchase-order link, check the customer’s ship-to address, and use Mark Shipped after the vendor confirms shipment. Verify the saved item fulfillment before handling customer and vendor billing separately.
The example orders seven units of the inventory item PX-740 service kit for Alder Creek Maintenance from Ridgeway Pump Parts. Alex Morgan and Example Supply Co. are fictional person and operating-company names.
Before you start
Verify Drop Shipments & Special Orders under Setup > Company > Enable Features > Items & Inventory. This example uses Advanced Shipping and Advanced Receiving so shipment and billing remain separate. Your role must be able to access the item, sales order, purchase order and fulfillment. Check vendor eligibility, subsidiary and currency, a usable purchase price, customer address, tax treatment and required classifications. Approval requirements and custom forms can change the available actions.
1. Check the item and vendor
Open PX-740 service kit through Lists > Accounting > Items. On the purchasing/inventory section, confirm Drop Ship Item is selected and Special Order Item is clear. These are mutually exclusive defaults. Inspect Vendors and confirm Ridgeway Pump Parts is the applicable preferred vendor with the intended purchase price and currency.
2. Enter and approve the sales order
Go to Transactions > Sales > Enter Sales Orders. Select Alder Creek Maintenance and review the order’s subsidiary, currency, date, tax treatment and classifications. Add seven Each of PX-740 service kit. Confirm Create PO is Drop Shipment and review PO Vendor and PO Rate where your form exposes them. On Shipping, verify the customer delivery address, then save.
If the order is Pending Approval, complete its configured approval process. Depending on configuration, PO generation can occur when the order is saved or approved. In this example approval generates the linked purchase order. If no link appears, check order status, vendor eligibility, purchase price and line treatment before attempting manual creation. A delay is not a reason to create a duplicate PO.
3. Check the vendor PO and customer destination
On the linked PO, verify the vendor, item, seven-unit quantity and originating sales order. Open Shipping and confirm the ship-to address belongs to Alder Creek Maintenance. Sales-order approval and PO approval are separate controls; complete PO approval if required.
4. Record the confirmed shipment
After the vendor confirms shipment, choose Mark Shipped on the drop-ship PO. Mark Shipped opens the related sales-order fulfillment for review. Check its sales order, customer, item, quantity and required shipping fields. Set Status to Shipped as shown, complete any required shipping fields, and save. Use this direct-to-customer route for the example; receiving the PO into inventory changes its inventory and accounting treatment.
5. Verify the result and remaining work
Confirm the sales order links to the intended vendor PO and that the saved fulfillment shows Shipped for seven units. Use the customer billing action available on the originating order or fulfillment in your account, and the vendor Bill action on the PO. Features, forms, billing preferences and workflows affect the available actions. Neither invoice nor vendor bill was created in this walkthrough.
Open Accounting Preferences from the Setup > Accounting menu (under Preferences in some navigation layouts), then select Order Management to inspect the drop-ship email, print and fax settings. Leave them unchanged when reviewing document handling. A selected preference does not prove a document was sent, received or delivered.
Common questions
Why is the drop-ship PO missing after I save the order?
Check approval status, the line’s Create PO treatment, preferred vendor eligibility and purchase price. PO generation can occur on save or approval depending on configuration. Check for an existing linked PO before creating another.
Does Mark Shipped create the customer invoice or vendor bill?
With the separate shipping and receiving features used here, Mark Shipped opens the related sales-order fulfillment. Save that fulfillment to record shipment. Customer invoicing and vendor billing remain separate, and neither was completed in this walkthrough.
Why does the PO use my customer’s address?
The vendor sends this drop shipment directly to the customer. Compare the linked PO’s Shipping address with the intended customer delivery address before sending shipping instructions.
Do the email and print preferences prove the vendor received the PO?
No. The preferences control document handling. Verify the actual transmission and receipt separately; the walkthrough only inspects the settings.