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Sales Order to Purchase Order to Dropship

Here is a step by step guide on how to handle a sales order that will be drop ship to a client. If you do not have enough in stock to complete the sales order, then a purchase order should be made and sent to the client. Since you aren’t actually receiving any of the goods, you should not be taking in any stock at all. Thus, you’ll create a Purchase Invoice that does not take items into stock, and this feature needs to be enabled in your Configurations.

 

SALES < New Order

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Enter the customer’s name and other information you find necessary, then add the items to the order:

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*Specify that the order is dropship by selecting the “Dropship” under “Type of delivery”

You can create the type of delivery under INVENTORY < Delivery Conditions < New. Name it “Dropship” and Save, you will now be able to set the “type of delivery”:

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Select “Confirm” once the sales order has been finalized:

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Once confirmed, if you do not have enough of the item in stock, you will see the following message highlighted in pink:

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There is not enough stock on hand to fulfill the order. To order more supplies, select rows with checkboxes and add the items to purchase orders

 

Since there is not enough stock, check off the items and select “add items to purchase orders”:

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Enter the supplier’s name and all other necessary information. Enter the customer’s name under “Drop ship to customer”, then select the address which is pulled from the customer’s card. If blank, you’ll need to add the address first. Once finalized, hit “Confirm”. This tells ERPLY the PO has been sent to the supplier:

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Once confirmed you will be given a PO #

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At this point you have created the Sales order for your client, and sent out the PO to your supplier to have the goods drop shipped directly to the client.

Now it is time to go back to the original Sales order, and convert it to an invoice to take a payment. Locate your Sales Order from the list:

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From the “More” menu, select “Create Invoice”

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An Invoice-Waybill form will appear. ***Change this Document type to Invoice. (Not Invoice-Waybill, which removes stock and since this is a dropship order, you do not actually have the stock)

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Once changed to Invoice form, hit “Confirm”:

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Once confirmed, the customer’s balance will display at top of the screen:

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Now to add a payment, go to the “More” menu and select “Insert Payment”:

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The Payment window opens, select the Payment type and total to be paid–SAVE:
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After saving, you can print a receipt using the “Receipt” icon in upper right:

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Select “Back” to go back to invoice and you’ll notice that the payment is now visible under the Payments tab:

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The payment status is now “paid”:

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At this point your Sales order has been converted to an invoice and completed. You can view the relation of the two documents by going back to your Sales orders menu. Notice that the sales order now shows the associated invoice # on the far right of line:

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Lastly, you’ll need to close out the Purchase order. Now that the customer has been billed, and the Purchase order has been sent to  your supplier, you’ll need to convert your Purchase order (PO) to a Purchase invoice (PI) that does not take items into stock.

You will need to enable this function, SETTINGS < Configurations < “Enable purchase waybills and purchase invoices as separate document types. If unchecked, you can only enter one kind of documents — Purchase Invoices — in Purchase module. A PI then takes goods into stock and also affects Accounts Payable” must be checked off.

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Open your PO, select “More” < “Receive purchase order”:

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*New Purchase form displays, by default this is Purchase invoice-waybill

*Manually change the document type to Purchase Invoice only (waybill deals with stock)

 

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Enter in your supplier sent invoice #, hit “Confirm” to finalize:

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You have now completed the process. At this point, the customer was invoiced from the sales order as well as the supplier from the purchase order.

Summary:

  • Create Sales order for client – specify it as dropship order

  • Create Purchase order to supplier- enter in dropship details

  • Re-open Sales order – convert to invoice and take payment to finalize

  • Re-open Purchase order – Receive via Purchase invoice to finalize

 

Associated Guides:

Suppliers: http://support.erply.com/suppliers/

How to Use Waybill Document: http://support.erply.com/how-to-use-waybill-document/

Settings: Configuration: http://support.erply.com/settings-configurations/

Customers: http://support.erply.com/customers/

Related Guides:

Purchase Return: http://support.erply.com/purchase-return/

Receiving Inventory against a PO and accounting for unshipped items: http://support.erply.com/receiving-inventory-against-a-po-in-erply-and-accounting-for-unshipped-items/