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Drop Ship Reconciliation

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Posted on by Jennifer H

Hello GP Community,

I'm struggling to reconcile the drop ship account and am hoping that someone could offer advice on best approach. I have seen from looking online that the balance in this account should be the variance between open, received drop ship purchase orders and open drop ship customer orders. How can I pull this information into a smartlist?

Also, while trying to manually review for the month it appears that the drop ship purchase order and sales order amount processed do not match on all instances. What would cause this to not function as desired?

Thank you for your help,

Jennifer H

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Microsoft Dynamics GP

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Joseph Markovich 3,900 on at

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RE: Drop Ship Reconciliation

Hi Jennifer-

Here is the field in Site Maintenance.

You'll just put your account number in there.

Joe
Jennifer H 45 on at

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RE: Drop Ship Reconciliation

Hello again, Trying to make the drop ship location and am wondering how do you tie the site to the drop ship account?

Thanks for your help.
Jennifer H 45 on at

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RE: Drop Ship Reconciliation

Thanks Joe, going to try your suggestion!
Joseph Markovich 3,900 on at

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RE: Drop Ship Reconciliation

Hi Jennifer-

Drop ships are complicated, aren't they? :)

In your previous reply, I read you use the Shipment Notification tool. Is this because you need to bill the customer before the invoice is actually received/posted from the vendor?

I have used it before, but remember it was a real pain.

I've read recommendations in the past about creating a separate inventory site (called drop ship or whatever) and then running all of your drop-ship sales and purchase orders through that site. It adds a bit of overhead, but a perfectly good solution. This way, you have more information in GP for what has been shipped, what needs to still be invoiced, and you can bill the customer before the invoice is posted from the vendor. If there is any kind of cost difference, it will get fixed at the time the vendor invoice is posted (just like regular inventory shipments).

The site can also be tied to a specific GL account (like your drop-ship account) so these transactions aren't in your normal inventory transactions in the GL. Just remember to exclude this site from your inventory reporting!

As for the costs not updating when the sales document and purchase order are linked: this has happened to me in the past too. Found out it was because someone had the sales order open when the vendor invoice was being posted. The lock on the sales order prevented the cost and quantity received update from happening.

Joe
Jennifer H 45 on at

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RE: Drop Ship Reconciliation

We do use the link, thank you, but there still have been instances where the costs pulled into the DS invoice don't match the linked purchase order. Any idea what would cause the amounts to not match the PO?

Thanks for your assistance,

Jennifer
Jennifer H 45 on at

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RE: Drop Ship Reconciliation

Thank you Shannon,

I'm able to see the drop ship purchase orders and drop ship sales orders. There are timing issues and I just found out that the shipment notification tool we use to invoice our customers could wreak havoc on reconciling as well.

While reading more into it, there was a suggestion to have a drop ship location.

Any experience with trying that approach?

Thanks again for your insight,

Jennifer
Joseph Markovich 3,900 on at

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RE: Drop Ship Reconciliation

Hi Jennifer-

Yes, you are correct about the drop ship GL account. Anything that has been entered and posted using Enter/Match Invoices in Purchasing, but has not been invoiced to the customer in Sales would make an amount show in your account.

In your drop-ship process, are you using both drop-ship purchase orders and checking the drop-ship box in the sales order lines?

Do you use the SOP-POP link feature to link the sales order line to the drop-ship PO line?

Joe
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Shannon Aune on at

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RE: Drop Ship Reconciliation

Hi Jennifer,

Can you restrict your PO smartlist to show you the PO's that have a PO Type of Dropship, which are also not closed, or is that currently what you are doing to get your list that you are trying to reconcile to the GL?

As for why the amounts processed do not match, is it a timing thing where some of the GL transactions are not posted at the time you are trying to reconcile to the GL?

If neither of those things help, hopefully someone else in the community can chime in with any ideas that they have used to assist you further as well.

Thanks,