Drop Shipment in NAV

Drop shipment is the shipment of the article directly from vendor to the customer. This is used when we have an urgent delivery or somtime when we avoid the warehouse storage cost.

Basically, drop shipment involves two process i.e. purchasing of goods from the vendor and instruct vendor to deliver it directly to the customer's address. This means the linked sales order is also created for invoicing customer.

Below are the steps to use drop shipment.

1. Create the sales order. Refer below as an example. Under lines, you can see the highlighted column "Drop Shipment" and "Purchasing code". This is mandatory to use this functionality.

When you try to post this purchase order, system will give below error message. This means that the sales order will be only be posted after the associated purchase order will be marked as recieved.

2. Create the new purchase order and fill the "Sell to customer number" field value with the customer mentioned in above sales order. Then follow the below highlighted option "drop shipment" given to fetch the lines from sales order.

Click on "Get sales order" under drop shipment and select the above sales order from the list. The lines in purchase order will automatically reflect.

3. Recieve the purchase order and then ship the sales order in system.
4. At the end, below will be the entries created in item ledger entry table i.e. one for sale and another for purchase.