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

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Hi!
I wanted to ask an opinion:
1) You can use a Drop-Ship Warehouse in a credit note to pay the incentives for Business Partners (so as not to move the stock )?
2) What problems could there be in the accounts?

Hi,
I guess ur questions will be answered better if posted in the SAP Business One Core forum(SAP Business One Application)
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Hi!
I wanted to ask an opinion:
1) You can use a Drop-Ship Warehouse in a credit note to pay the incentives for Business Partners (so as not to move the stock )?
2) What problems could there be in the accounts?

The downside might be:
1. No transparency for you inventory movement. What if someone made a wrong assumption to credit the wrong items they should be counted?
2. The essential problem might be: why do you need such transactions in the first place? Is it something related to RMA?
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[Discussion] Effects of a Drop ship warehouse

Dear Experts,
I have done some brief testing with Drop ship warehouses, I only realized when we buy in stocks into the warehouse, the warehouse does not record quantities due to "Drop ship", and when we sell items from that warehouse, the system does not perform any "Minimum stock level" validation..etc
Apart from the above, is there any other effects and how we use Drop ship warehouse?
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Chinho

The main advantage to using the drop ship designation on a warehouse is that you don't need to enter Goods Receipt PO's or Deliveries - you can go directly to the invoice documents. Also, there is no chance of having an inventory value on your books - even temporarily - when you don't really have that inventory in-house. As you have seen, the disadvantages are that there is no average or FIFO cost for the items, and no valid gross margin calculation (unless you calculate by a price list). There would be no purpose to using the negative or minimum stock validation, since there is never any stock in a drop-ship warehouse. Some companies choose to use the drop ship functionality, and some don't. I have one customer that uses a separate warehouse in each branch for drop shipments, but does not check the drop-ship flag. Instead, they have a UDF on the warehouse to indicate that is is for direct shipments. They can track drop ships that way without the disadvantages of the SAP functionality.

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Dear Experts,
We would like your help in the following case. We are using SAP Business One 9.0 (PL10)
When a Sales Invoice document is added to the system using the Drop Ship warehouse, then in the report 'Stock Posting List' it does not display the document, which is correct since a Drop Ship warehouse is used.
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Hi Vassilis,
Sorry, but in my opinion it's correct.
We also use Drop Ship and like you said in the Stock Posting List we don't have any document and it's perfect. In other way when we sell an item we want and it's true the quantity that B1 is showing.
We want to see the for a itemcode we sold 100qty qith the value of 1000.
There's no way to avoid this SAP B1 behaviour.
Kind regards,
Augusto

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Hello Experts,
I have made couple of transactions in Drop-ship warehosue / items (using GRPO document). I could not see the inventory quantity anywhere. Can you please guide me where could I check the inventory which is in DROP-ship warehouse ?
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Thanks Sachin,
1. That means we can not use Dropship warehouse in any document on sales side other than Sales Order ?
Can you please guide me how can I keep the track / visibility of the inventory of my customer if I want to, without effecting my inventory value. Just quantity of my customer inventory need to be tracked... kindly help
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Can Drop Ship Warehouse be Utilized for Commission Only Business?

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