Many companies do at least some amount of drop shipping directly from their vendors, to their customers. Accounting for this type of transaction can be a challenge. You want to make sure to exercise proper control so that you make sure that your properly bill your customers for the items your vendors have shipped to them. Because there is no physical handling of the items, it’s purely a paperwork puzzle.
These are some of the key things that need to be considered:
- Ensure that the vendor has accurate shipping information to properly deliver the shipment to your customer
- Ensure that the vendor communicates with you on a timely basis to so records adequately reflect product movement, and allow you to invoice your customer as soon as appropriate
- Allow for adequate reporting to alert you to exceptions
- Make sure that your system can efficiently account for and track these types of sales
Dynamics GP has a built in process for processing drop shipments.
This video shows the basic drop ship functionality in Dynamics GP. From customer order, to purchase order, to customer invoice: http://youtu.be/CsUvTiw2PtM