Introduction to MS Dynamics 365 Business Central Drop Shipment Ing.J.Skorkovský,CSc. Department of Business Management Faculty of Business and Administration Masaryk University Brno Czech Republic BC Basic procedures •Drop Shipment principles I * Drop shipment * Principles -Reasons for using drop shipment * Lower transport costs * Faster delivery and and thus a shorter due date * Zero costs for warehouse operations * Golden Drop Shipment rule->shorter Cash-to-cash cycle * Setup * Model example * Others 2 •Maps and reasons 3 Our company Wholesaler Drop Shipment principles I. •Drop Shipment principles I. * Specifies whether your Vendor should ship the items on the line directly to your Customer. * You use a Drop shipment when an item or group of items is shipped directly from your Vendor to your Customer and is therefore not registered in inventory. * 4 Wholesaler Vendor Customer 5 1 2 3 4 4 6 1 Quote 2 Sales Order 3 Purchase Order 4 Delivery list and delivery itself 5 Sales invoice 6 Purchase invoice Drop Shipment principles – setup (see Sales Line) •Drop Shipment setup * First place a check mark in the field Drop Shipment to indicate, that the item on the Sales order line is a Drop shipment type and in the Purchase code field you have to choose Drop Shipment code * Then create a Purchase order to order the corresponding items from your Vendor. You can create the order directly from the Purchase Order or indirectly from the Requisition Worksheet (RQWS). In this part of model we will use firstly Direct method and later the one with RQWS. * When you set up the Purchase Order, use the function Drop Shipment and Get Sales Order to link to the relevant Sales Order. The Sales Order lines will be copied to the newly-created Purchase Order. We will not use Item tracking in this model and if Yes - > see next clause: * You cannot post a Drop Shipment order that has item tracking unless item tracking is synchronized - Serial numbers and Lot numbers must be the same between the two connected orders (our model uses synchronization) • * 5 Personification od the Business Central lines •Setup Sales line 6 Sales Order Line If these fields are not already visible in the sales line Drop shipment-> method without using Requisition worksheet •Drop Shipment 7 Customer 10000 Sales Order line Header Purchase order –Drop shipment (manual version) •Drop Shipment 8 It is necessary to input Customer number on tab Shipping and Payment. First action: Our customer Drop shipment – Purchase Order- transfer of the Sales lines (one possible variant to get SO) •Purchase order creation 9 Second action (this will access list od Sales Order and you have to make a choice to copy SO in question) Next slide same operation different BC version Access to the Drop shipment and icon Get Sales Order is essentially the same Drop shipment – Purchase Order- transfer of the Sales lines (BC version 23.5) • 10 Access to the Drop shipment and icon Get Sales Order is essentially the same Purchase order line after copy Sales Order line • 11 From here you can see the Sales Order, which is directly linked to the Purchase Order Purchase order –Drop shipment (manually created – Direct method) •Drop Shipment 12 Purchase order line after copy Sales Order line Purchase order have to be posted (only Receive!!!) Sales Order line after Purchase Order was posted as Received Relations Purchase order <–> Sales order •SO-PO link 13 It's already been shown once on one of the preceding slides (11) Golden Drop shipment rule •Golden Drop shipment rule * You cannot invoice the purchase order before the sales order is invoiced. If you try, you will get warning message • * 14 Go to internet to see cash-to-cash cycle oir next slide Cash-to-cash cycle •Cash-to-cash cycle * The cash to cash cycle is the time period between when a business pays cash to its suppliers for inventory and receives cash from its customers. The concept is used to determine the amount of cash needed to fund ongoing operations, and is a key factor in estimating financing requirements. 15 Cash flow Sales order – Invoicing Sales Order •Drop Shipment • 16 Sales Order line before invoicing Sales Invoice line after invoicing Posting PO (invoice only) •Drop Shipmnet 17 Part of the Purchase Order Line Item Ledger Entries •Drop Shipment 18 Drop shipment by use of Requisiton worksheet •Drop Shipment 19 Sales order line Requisition Worksheet •Drop Shipment 20 Using option Get Sales Order you must enter code of our model customer. Before on item card we have to enter code of the prime vendor Requisition Worksheet •Drop Shipmnet 21 Therefore you create Purchase Order and subsequent operations are same as in manual version (Receiving Purchase Order, Invoicing Sales Order and Invoicing Purchase Order) Purchase Order Line Next example would be suitable after principle of LOT NUMBERS will be introduced !!!!! •Drop shipment and Lot numbers 22 We will deal with this issue when we discuss the principles of lot numbers Item and Sales Order line with Drop Shipment Setup – with use of Lot Numbers •Sales Order line with setup Drop Shipment 23 See next slide We have to use still untouched item (no entries created so far) Purchase Order (manual version) •Purchase order 24 Purchase order line Purchase Order – the list of available Sales Orders •Purchase Order – the list of available Sales Orders 25 Updated Purchase Line •Updated Purchase Lines 26 If 80002 item has setup for item tracking you have to assign a Lot code Item Tracking Lines •Item tracking lines 27 After ESC we will get this message Posting Purchase Order (Receive only ) •Posting Purchase Order (Receive only ) 28 Purchase line Sales line Golden Drop shipment rule •Golden Drop shipment rule * You cannot invoice the purchase order before the sales order is invoiced.If you try, you will get message • * 29 Item tracking lines on Sales Order • 30 We will sell 3 pcs of 80002 Post only as Invoiced on Sales Order and Purchase Order • 31 Item Ledger Entries • 32 • 33 Navertica.png Thanks for Your attention and time