Drop ship process

Hi All
Can any one explain what is drop ship in Sales and Distribution, used mostly in US.
venkat c

Hi,
Probably you are referring to the review of Open sales orders for drop ship scenario and close them out if they are long pending. There is no point in supplying materials for an order received few months back, because even the customer may not want it anymore.
There is nothing specific in SAP for this activity that you have mentioned.
Will this help?
Thanks,
Siva

Similar Messages

  • Cost Carrying Over in Drop Ship Processing

    Hello Experts...
    When doing a drop ship sales order, this is the following situation.  Item A has cost at Warehouse 01 (stock warehouse) of $400 and cost at Warehouse 03 (drop ship warehouse) of $425. 
    When doing a drop ship sales order, the correct cost of $400 from WH 1 is displayed initially until the WH is changed to WH 3, then it displays WH3 cost of $425.  However, when the Purchase Order Confirmation Screen is displayed, the cost reverts back to $400.  We have done a test 15 times in the Demo SAP B1 and even more information is not passed on using the "Copy To" function (for example, the Delivery does not pick up any costs - it is blank when processing a drop ship).
    Of course it could be changed at the Purchase Order Confirmation Screen, BUT a real simple statement comes up of why does a Sales Person have to change it when the cost is in the system and is displaying correctly on the Sales Order.  From a common sense perspective of financial matters and productivity, it takes the statement even further - why even put a cost on the Drop Ship Warehouse when the system does not pick it up.  It gets even worse when the Gross Profit comes out to being 100%.  The whole drop ship process seems to be a mystery in the SAP Documentation.
    QUESTION: Is there some setting that needs to be changed so that the correct drop ship cost is carried throughout the system automatically and all of this wasted time is cut out?
    The user guide published on Februrary 2009 covering this topic does not say anything about COMPLETE drop ship processing and cuts off at the display of the Purchase Order Confirmation Screen on page 6.
    Thanks - Zal

    Hello Julie - thanks for your reply...version is 2007 SP01 PL05...
    Maybe the problem with the cost being carried over with "Copy To" was corrected in PL07?  Will go to the release notes...
    This is getting to be a comedy - again, I am using and testing this function on SAP's provided "vanilla" Demo database with no changes, so if SAP cannot set up drop ship functioning properly on their own Demo, who can???
    OK - yes, the cost of the product is pulled from the associated vendor which is problem number one - for companies that sell both inventoried and drop ship items on a regular basis, the cost of that product is never the same.  For vendors, onsies and twosies being shipped to our customers incurs a higher expense than a shipment to one site of 100 or 200 items and they will quote a different cost to cover those expenses.  It just makes common sense that the vendor's incurred expenses to fill the drop ship versus shipment to our waregouse is going to be different, doesn't it?  Therefore the actual cost and dollars paid for the product will be different from WH01 over WH03 (or any other area - Base Price versus Discount Purchase Price), and the gross profit is going to be different between the two versions of a sales process.  Creating a thousand different price lists certainly is not the answer!
    And this begs a very simple question then - why even put in an item cost on the Item Inventory Tab for the drop ship warehouse AND why does the system pull the WH 03 dollar amount into the Sales Quotation/Order Gross Profit Base Price field but not transfer it to the Purchase Order?  Why create a constant flood of erroneous Gross Profit information on drop ship AR invoices unless you are happy to have wasted productivity?
    I think the real problem is that this is obviously a very bad design for an SAP B1 function and folks are doing all of these workarounds and extra steps (at least in PL05 so far) to get their work done.  I think it is hilarious that when trying to enter a ticket directly to SAP on this, I got the reply that "that is the way the system is designed" (albeit bad design and no effort to direct me to documentation) and had to post my question here according to new SAP B1 support standards.
    I am going to close this question as there really is not an answer except "way the system is designed" and this thread is leading nowhere.
    Many thanks to everyone who took the time to reply - lol - of course, thanks with points!!!
    Take care all - Zal

  • 3rd Party Drop Ship Process

    Hello Friends
    I was told to create a third party drop ship process and its going to be only one product for now , please help me to show steps to create this.
    Thank's

    Hi Balaji
    I create the 3rd party process steps , and i also saw the configuration in the system already done in the past , so i created the sales order but i want item category to be automatically on the sales order , but i am not sure about this. so i tried changing manually and this was the error ...item category ZTAS is not defined for this item.please advise how to fix this
    Regards

  • Intrastat report in drop-ship process

    Hi,
    I have drop-ship scenario where plant country belongs to France ( FR) but actual shipment happens from Taiwan(TW).
    Butin the sale order we use plant as France(FR) and shipping point as Taiwan(TW).Since these are drop ships dispatched from non EU countries i.e in my case Taiwan(TW), the intrastat report ignores it. i.e on the invoice document in the "Trade/Custom" tab both "Country of origin" and "Dispatch country" will show as France and the same is picked in Intrastat reporting.
    But this is wrong since actual shipment has been done from Taiwan country . Therefore how can we change this to Taiwan i.e correct country.  One way is change in the user exit of billing.
    but is there any other way, i mean process wise ?. If we do third order sales process would this resolve problem. if so how can this be achieved.
    What i have noticed is even in third party sales process it has the same problem.
    Thankyou in advance

    Thankyou for your reply.
    even if i use Foreign Trade concept , but my plant in sales order is "France" and shipping point as "Taiwan", then the problem is instrastat will ignore Taiwan as a departure country  , it shows only France as departure country , but it should be Taiwan. Therefore how can we resove this problem.
    I dont want to change dispatch country as "Taiwan" using user-exit  in invoice-> "customs/Trade" tab , because if i change this field then instrastat report will pick-up . But withoug user-exit how can we change via config or process wise.
    Thanks in advance

  • Drop Ship processing for Sales BOM

    Hi,
    We have a requirement to have a Sales BOM drop shipped from a Vendor. Only the header material is relevant for pricing and purchase order. However, we have a business requirement to explode the sales BOM in the sales document and billing document to address statistical pricing requirements at the component level.
    Since only the header material is required in the PO, it has a billing relevance of 'F'. However, we have set the components to be relevant for order related billing. Standard SAP opens up the components for billing even though a vendor invoice for the header has not been received.
    Can copy control be used to control the components from being billed unless the header is billed AND the quantity of component materials modified based on the header material being invoiced ? Is it possible to only explode the sales BOM in the billing document using a billing document exit ?
    Would appreciate suggestions from the forum.
    Regards

    Hi
    The billing document creation can be controlled through the copying requirement in Copy Control of Billing documents.
    Transaction VOFM | Billing documents: Create a new requirement which prevents billing unless the parent item has the vendor invoice receipt.
    This requirement has to be then assigned to the respective billing and sales document type in copy control.
    Regards,
    Vinu

  • Drop ship, Sales order line quanity changes

    At what stages can we able to change the line quanities on the sales order for the drop ship transaction type.
    1. Book
    2. Run purchase release from OM
    3. Run requisition import from PO( Requistion creation)
    4. Auto create PO
    5. Approved PO.
    Above are the steps to for dropship. I am wondering what are the stages we can chage the SO line quantity and indeed will get reflected in PO?
    Thanks.

    Hi Vinoth,
    For a drop ship SO line, you can change the Qty till the Purchase Order is in Incomplete state i.e., before it is Approved. Once the PO is approved, you can't change the qty on the SO line. In case, you want to change the Qty, then perform some changes in the PO so that its status goes back to Requires Reapproval, then you will be able to change the SO Qty.
    However, if you would want to override this functionality then you can go to the Processing Contraints & disable the same. This will allow you to change Qty even on an approved PO.
    Additionally FYI, once the PO is approved, you can't change Schedule Ship Date & Ship To Address or Cancel line on the drop ship SO line. This functionality was incorporated from 11.5.10.2 as a part of Change Management for Drop Ship process.
    Regards,
    Hemanth

  • Third Party Drop Ship with Auto PO Generation

    Hi All -
    I am using a third party drop ship process and I would like the PO to be automatically generated by the system.
    I have changed the configuration on the TAS item category and checked 'Create PO Automatically'.  I went to OVX5 and maintained the Purchasing Org, Plant, Purchasing group, and order type for my Sales Org. 
    When I create a sales order with a material with a TAS item category.  The purchase requisition gets created but the PO does not.  Am I missing something in set up? 
    Please help
    Thanks
    J

    Auto Po will not generates in third party sales, only PR will get generated based on PR we have to create PO in ME21N.
    pls search in forum will get many threads on this
    Third Party Sales-Automatic PO generation
    Re: Automatic PO isnt working from TAB item category
    Regards,
    Ramesh

  • Drop Ship : Service Item

    Hi Guru's
    Please let me know whether Dropship process can be done for the Service item's
    Requirement need to create Quote for Service item, then followed by Order and follow the drop ship process.
    Thank you in advance.
    Regards
    Nikal

    A given item CAN be procured internally or externally.
    But that attribute is set when the sales order line is booked.
    So you need some kind of a personalization that will look at the available qty of the item being ordered and then set the Source type to External if enough qty is not available.
    Hope this helps
    Sandeep Gandhi

  • Drop Ship workflow Process Name

    Hello,
    Does anyone know the seeded Process Name that could be used for drop ship orders. According to the documentation I've read about drop ship, they explained to use the Generic Order Flow which I did. The problem is with the line level process name. I've tried Line Flow Generic and several other process names but my orders get stuck at the booking level. Other types work just fine. I've also changed the source type to external but nothing works!
    I'm using Vision 11.5.7
    My setup is as follows:
    Item = transactable, stockable, customer ordered, customer orders enabled, shippable, oe transactable
    transaction type: Drop ship, order category= order, order workflow = order flow- generic, Assign line flows-->Process name= Line flow- generic
    Line type --> source type= external
    Set up defaulting rules as well
    Orders get stuck at booking! Should be awaiting receipt
    Your help will be appreciated
    Cheers
    Riad

    Hi Sandeep,
    Are you sure whether the Workflow Background Process has picked the order line and workflow activity is not errored out? Please check the workflow, has it completed Purchase Release activity or is it still in the Purchase Release - Deferred state?
    If the workflow is in the Purchase Release - Deferred state, then the line will be in the Booked status. So, run the WBP program (item key - OM Order Line, Process Stuck - Y, Process Timeout - N) & see the line workflow activity & the line status should be progressed to Awaiting Reciept.
    Also, make sure you have provided the List Price (greater than zero) & Default Buyer in the Purchasing tab at the Item master level for the dropship item. If these information are not provided then the Requisition will not be created.
    Regards,
    Hemanth

  • Vendor Drop Ship Sales Order statues Issues

    Process flow : OR ( item category ZVDS u2018Vendor Drop Ship" ) >> PO >> MIGO >> Invoice ( its order related billing ) no delivery involved in this because of drop ship
    after sales order OR system generate PR and PO and if customer reject the PO so user put line item as mark for deletion in PO we cant delete PO and its tie up with Sales order and Over all statues at header lever is OPEN u2026is there any way where we can change over overall statues in sales order
    We have an significant amount of these orders that continue to appear in numerous reports when they should not be of selected criteria,
    But the main issue being when these orders are cancelled, returned, etc. They are not removed from VF04 "Billing Due list".

    Pls reply me

  • COPA - Third Party Drop Ship Returns - Vendor Discounts

    Hello -
    This is challenging so I hope some of you can help me please!
    Can anyone explain to me how vendor discounts work in copa as they relate to third party drop ship returns?  We use net vendor invoices where discount is taken at time of vendor posting and offset by clearing account.
    We have several scenarios where we cannot reconcile FI and COPA for COGS account because of the discount on the vendor credit memo.
    An example:
    We have created the sales order and purchase order for the process.  Then we do a migo and a miro from the vendor. 
    The vendor document has a discount of 1%, so if it costs $100, here is the accounting:
    MIGO -
    dr. cogs 100
    cr. gr/ir 100
    miro
    dr. vendor discount clearing 1
    cr. cogs 1
    dr. gr/ir 100
    cr vendor 100
    then we bill the customer.
    Copa at this point gets hit with 99 debit to cogs value field (100 -1 =99)
    then we process the customer credit memo request.
    Then we process the vendor miro credit.
    dr. cogs 1
    cr. vendor discount clearing 1
    dr. vendor 100
    cr. gr/ir 100
    At the time the vendor credit memo is posted, sap inserts a new copa line-item on the customer billing document with $1.00 debit to copa.
    then we reverse migo
    dr. gr/ir 100
    cr cogs 100
    And then we bill the customer credit memo, which creates another copa document that credits copa with $99.00.  why doesn't this create a copa document of -$100.  this would help tie out copa and fi.
    If you go through and look at all cogs postings on FI side, the credits and debits = 0
    If you go through and look at the cogs posting in COPA, the credits and debits = 1
    therefore, fi and co don't tie.
    please give me any ideas that might help me.

    Hi Valerio,
    Have you found any solution for your issue?
    We have a similar problem with 3rd party drop ship orders and COPA. Cost of Goods Sold Drop Ship is being charged when we use MR11 to clear GR/IR account. This is causing reconciliation issues between COPA and the General Ledger.
    Let me know if you have come across any clues?
    Thanks.
    Ram

  • Can Drop Ship Warehouse be Utilized for Commission Only Business?

    Our company has a small percentage of business where we act as a broker only.  We process the customer orders, send the vendor POs and monitor the shipments, but we do not pay the vendor or collect the payment from the customer.  The customer pays the vendor and then our company collects a commission from the vendor.
    The documentation in the help file for drop ship warehouse seems to imply that this scenario is possible:
    Drop Ship
    Select this option to define the warehouse as a drop ship warehouse. Use when the company does not manage inventory, but receives commission for every order.
    I have reviewed some webinars on Drop Ship warehouse.  The scenarios shown culminated in creating A/P and A/R invoices which is not what we want to do.  We are aiming for a Cashless transaction with commission being collected.
    I have setup the drop ship items to have commission by item with the percentage in the Item Master.
    Is this scenario possible in SAP B!?  We have ver. 8.82 PL 05.
    Thank you in advance.
    Julie

    Hi Julie
    try this:
    - one drop ship warehouse.
    - items with commisions, all with warehouse by default.
    - for these items you can create two prices lists, one with the sales prices and another with sales prices plus your commision.
    - create a sales order; when your customer receives it you have to close.
    - create a query to show you all closed sales orders between two dates, and the lines with two prices and the difference.
    - now you know your commisions.
    Kind regards.
    Agustin Marcos Cividanes

  • G/L A/C Determination for Drop Ship and Regular Ship of Same Item

    Hello Friends,
    We have a scenario,
    Stock is Sales order valuated stock
    For the same material, some times we do a drop shipment from vendor and some times we do a regular shipment from our plant.
    Being sales order valuated stock the GL account (On the PR generated from sales order) for drop shipment is getting picked up from BSX. (standard SAP)
    Our Finance team dont want the G/L account from BSX to be picked up.
    Because the BSX G/L account is a finish good G/L account and we dont want to use that for drop ship.
    How do we solve this issue?
    What is the standard process to get the G/L account if the same material is drop shipped and regular shipped?
    Thanks for your help.
    Thil

    Hi,
    The most common way to solve your problem is to use split valuation.
    This can be easily done. I you want to know how to use split valuation let me know I will detail steps you need to follow.
    Regards
    Srinivas

  • ESYU: FAQ - Drop Ship Purchase Orders 2

    Purpose
    RECEIVING: Drop Ship PO's - Release 10.7, 11.0, 11.5.X, r12
    Information in this document applies to any platform.
    Q/A를 통해 Drop Ship Purchase Orders에 대한 이해도를 높인다.
    Solution
    Q8. Configurable Items은 Drop Shipped 가능한가?
    A8: 현재는 Standard Items 만을 Drop Shipped 할 수 있다.
    Configurable Items를 위한 functionality는 향후 release에 포함될 것이다.
    Q9. Operating Units를 교차하여 Drop Ship을 할 수 있는가?
    A9: Release 11i는 현재 이 functionality는 지원하지 않는다.
    Q10. Drop Shipment에서 over/under shipment는 어떻게 처리하는가?
    A10: 만일 drop-ship line의 일부만 ship 되고 나머지 수량에 대해 fulfill을 원하지 않는다면 line을 cancel 한다.
    Over shipments 또한 manual 하게 처리해야 한다.
    만일 supplier가 ordered quantity 보다 많은 수량을 ship 하였다면, customer에게 추가된 수량만큼
    bill을 할 수 있거나 customer에게 추가 수량을 return 해 달라고 요청 할 수 있다.
    Drop-ship Sales Orders와 이에 연계된 purchase requisition/orders 간의 차이를 보고 싶으면
    Drop Ship Order Discrepancy report를 이용한다.
    Q11. Drop Shipment와 Blanket PO's를 사용할 수 있는가?
    A11: Blanket PO는 Drop Shipment와 같이 사용할 수 없다. 왜냐하면 PO는 OM이 PO에게 Drop Ship order가
    생성되었음을 공지시 생성되어야 하기 때문이다.
    Rececipt이 될때(partial or complete) 이 PO는 Drop Ship order와 link 된다.
    Drop Ship lines은 pick release, ship confirm 혹은 INV interface order cycles을 이용하지 않는다.
    Q12. Valid Blanket PO를 생성시 blanket agreement에 있는 item을 위해 drop shipment orders를 base로 하는
    release를 생성하는 것이 가능한가?
    A12: Yes, drop ship orders로부터 자동 혹은 autocreate window를 통하여 release를 생성하는 것은 가능하다.
    만일 drop ship requisition이 correct blanket information(source)을 가지고 있다면
    1. 요구되는 supplier site에 대한 ASL entry를 setup
    2. Hierachy에 따라 어떤 assigment가 좀 더 알맞은지 결정하고, 요구되는 supplier/site를 가지고 요구되는
    level에 따라 sourcing rule을 정의한다.
    또한 위 supplier/site에 대한 ASL entry가 존재하는지 확인한다.
    Profile option 'PO:Allow Automatic Sourcing' = Yes인 경우 automatic sourcing이 실행되며, creation date와
    document type에 따하 source document가 자동으로 결정될 것이다.
    Q13. Receive 후 Drop Shipment를 cancel 할 수 있는가?
    A13: Oracle Purchasing에 한 번 receipt 한 후에는 Drop Shipment는 cancel 할 수 없다.
    만일 Drop Ship Sales Order line을 cancel 하길 원한다면 cancel을 원하는 line에 대해 receipts은 없는지와
    연계된 requisiton이나 purchase order가 cancel 되어 있는지 확인을 해야 한다.
    Partial Deop Ship receipt에 대한 cancellation은 가능하나 아직 receive 되지 않은 부분에 대해서만 cancel
    할 수 있다.
    만일 모든 수량을 shipped 하지 않은 drop shipment line을 cancel 한다면 order processing은 line을 split 한다.
    첫번째 line은 shipped 한 수량을 포함하고 두 번째 line은 non-shipped 수량을 backorder로 가지며,
    이 두 번째 line(backorder)을 cancel 할 수 있다.
    PO line 수량은 새로운 수량을 반영하기 위해 변경되어져야 한다.
    Q14. Drop Shipment를 위한 debugging tools은 무엇인가?
    A14: 1. Note 133464.1 - Sales Order의 troubleshooting problems을 위해 사용할 있는 diagnostic script를 포함.
    2. Receipt transaction이나 Sales Order issue transaction debugging을 위해 아래 profile options을 set:
    RCV: Processing Mode to Immediate or Batch
    RCV: Debug Mode to Yes
    OM: Debug Level to 5
    INV: Debug Trace to Yes
    INV: Debug level to 10
    TP: INV Transaction processing mode to Background
    - Sys Admin: Concurrent> Program> Define> query up the Receiving Transaction Processor and check the Enable Trace box
    - Deliver Transaction을 위한 receipt을 저장 (Deliver Tranasction을 위한 destination type은 inventory 이어야 함)
    - Receiving Transaction Processor log file, Inventory Transaction Worker log file, trace등을 review
    Q15. Drop Shipment로 부터 생성된 PO의 status와 Import source는 무엇인가?
    A15: PO status는 언제나 approved.
    Import source: Order Entry
    Q16. 관련된 Sales Order Line이 cancelled/closed 된 PO shipment를 receive 할 수 있는가?
    A16: 관련된 Sales Order Line이 cancel 되었거나 closed 되었다면 PO shipment는 receive 할 수 없다.
    이 PO shipment는 cancel 해야 하며, 필요하다면 새로운 Sales Order Line이 생성되어야 한다.
    Reference
    Note 225434.1

    Hi Suda,
    Yes, the purchase orders are created directly from the sales order, so there should be some sort of link between the two I would think.  However, I may be wrong in this line of thinking.
    The UDF would be on the header as our customer puts an entire sales order on only one purchase order.
    Thank you for your quick response.
    Amanda

  • Third party Drop Ship

    Hi All,
    We have a scenario wherein we use third party drop ship for accessory material. Currently when a sales order is created with multiple line items, it generates multiple purchase requisitions against each line item. These PR's are in turn converted to multiple PO's.
    Can we have an option of generating a Scheduling agreement with reference to multiple PR's generated, or any other way where we can club the items may be as per material group. This is required in order to avoid processing of multiple Purchase documents.
    Let me know.
    Thanks,
    Sourabh Kothari

    Hi,
    I am converting the PR's generated from third party Sales order into PO. Against single PR i can create one scheduling agreement.
    Is there any way to update single SA against multiple PR's generated from multiple Sales orders. What transaction should i use to create it
    In case i convert it to PO from Me29, is there an option of adding a line item if i have new PR in the same PO?
    Thanks,
    Sourabh Kothari

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