Drop Shipment

Advanced Intercompany supports the direct delivery from the vendor to the final customer which is the process called drop shipment. In such a scenario in the BUYER company, a sales order for the final customer is created and a purchase order is sent to the IC partner. The purchase order is sent to the IC partner and sales order is created on the SELLER side. The exchange of the documents between the BUYER and SELLER company does not differ from the regular process. For more information, read Purchase Order to Sales Order. However, a few enhancements for the drop shipment functionality have been introduced.

Setting up a Purchasing Code

To configure the purchasing code which can be used by Advanced Intercompany:

1. Choose the icon, enter Purchasing Code, and then select a related link.
2. On the Purchasing Codes page, select the IIC Drop Shipment field.

Note

The IIC Drop Shipment field can only be marked when the standard Drop Shipment field is selected.

Automatic Purchase Order Creation

To turn on automatic drop shipment purchase order creation on sales order release:

1. Choose the icon, enter IIC Setup, and then select a related link.
2. On the IIC Setup page, select the Auto Create Drop Shipment Purchase Order on Sales Order Release field on the Drop Shipment FastTab.

Note

With this option enabled, releasing a sales order that contains an uninvoiced IIC drop shipment sales lines that are not linked to any purchase order will result in the creation of a related purchase order for the selected IIC drop shipment vendor.

Automatic Receipt Posting

To turn on automatic purchase receipt posting when accepting the shipment notification:

1. Choose the icon, enter IIC Setup, and then select a related link.
2. On the IIC Setup page, select the Auto Post Drop Shipment Receipts field on the Drop Shipment FastTab.

Note

Posting a purchase receipt will result in posting the sales shipment on the related sales order for the final customer.

Automatic Sales Invoice Posting

To turn on automatic sales invoice posting when accepting a purchase buffer document:

1. Choose the icon, enter IIC Setup, and then select a related link.
2. On the IIC Setup page, in the Auto Post Drop Shipment Invoices field select whether sales invoice to the end customer should be automatically posted after accepting a purchase buffer of the Shipment Notification or Invoice type.

Making IIC Purchase Order from the Sales Order

To create an intercompany purchase order from the sales order for the final customer:

1. Prepare a sales order document like a document for the standard drop shipment process.

2. Fill in the Purchasing Code field in the sales lines with the code used for the IIC drop shipment.

3. On the Shipping and Billing FastTab, fill in the Drop Ship. Vendor No. field with the intercompany vendor.

   Note

   The number on the Shipping and Billing FastTab in the Drop Ship. Vendor No. will be filled in automatically, if the Drop Ship. Vendor No. field is filled on the Customer Card page.

4. Release the sales order.

5. Use the Create Drop Shipment Purch. Order action to create a linked purchase order document.

Note

Alternatively, the purchase order document can be created by using the requisition worksheet.

Making Multiple IIC Purchase Orders from the Sales Order

To create multiple intercompany purchase orders for different vendors from the sales order for the final customer:

1. Prepare a sales order document like a document for the standard drop shipment process.
2. Fill in the Purchasing Code field in the purchase lines with the code used for the IIC drop shipment.
3. Fill in the IIC Drop Ship. Vendor No. field in each sales line with the intercompany vendor for which a purchase order will be created.
4. Release the sales order.
5. Use the Create Drop Shipment Purch. Order action to create a linked purchase order document.

Making IIC Purchase Order linked to multiple Sales Orders

To create an intercompany purchase order that is linked to multiple end customer sales orders:

1. Prepare a sales order document like a document for the standard drop shipment process.
2. Fill in the Purchasing Code field in the purchase lines with the code used for the IIC drop shipment.
3. Fill in the IIC Drop Ship. Vendor No. field in each sales line with the intercompany vendor for which a purchase order will be created.
4. Release the sales order.
5. Create an IIC purchase order for the IIC vendor.
6. Use the Get Sales Order Lines action.

Handling New Lines in the Drop Shipment Process

When a partner adds a new line to an intercompany sales order, several fields on the purchase buffer become editable, including:

• Create Drop Shipm. Sales Line and
• Sales Order No. (or Sales Return Order No. for returns).

The Create Drop Shipm. Sales Line field is set to true by default. If there is only one end-customer sales order, the system automatically fills the Sales Order No. field. If multiple end-customer sales orders exist, an error message prompts the user to specify the correct one.

If Create Drop Shipm. Sales Line is set to false, the new line is created on the purchase order, but it is not linked to an end-customer sales order.

Fields Exchanged between Purchase Order and End-customer Sales Order

In the drop shipment process, several fields are exchanged between the intercompany purchase order and the end-customer sales order.

Purchase Line Field	Sales Line Field
Quantity	Quantity
Item Variant Code	Item Variant Code
Planned Receipt Date	Planned Delivery Date
Promised Receipt Date	Promised Delivery Date
Requested Receipt Date	Requested Delivery Date

External Vendor Drop Shipment

Advanced Intercompany supports direct delivery from an external vendor outside of Business Central to the buying company. The process is called external vendor drop shipment.

In this process, when the goods are received, the buyer company sends a receipt notification message to the seller company. After receiving the receipt notification message, the seller company can automatically continue the process and post a sales shipment and a sales invoice.