drop ship receipts

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we are in the process of implementing MSDGP and had a question....we buy raw material (steel) than send it to a coaters for paint and than the material hits our dock.....so we cut out two purchase orders lets say one for 40 dollars for the raw steel and one for 20 to get the material painted....if I drop ship the material from steel supplier to painter and i receive the drop ship order how does that affect the transactions? i am not sure if i am wording my questions correctly...but i need help...

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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How do you represent the painted steel in your inventory? Is there a bill of material for it?

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Community Member on at

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there is no bill of material for these part numbers.....in the past they generated manual purchase orders one for the metal supplier and another for the paint supplier....this is the first time ever going into an actual ERP system...and i am trying to figure out how to make it work...we are beginning with the inventory and purchasing modules first and than going into the rest.....

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Galina 1,077 on at

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You cannot receive a drop-shipped PO in GP.

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Community Member on at

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ok so that leads me to my next question....if i cannot receive it but can only invoice it.....so what happens to that material from the drop shipment?

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babubaskaran@outloo... 12 on at

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Hi,

GP does allow drop shipment please refer the following post by our Community member Mr.Soma.

community.dynamics.com/.../entering-a-drop-ship-purchase-order-in-dynamics-gp.aspx

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Community Member on at

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i understand that it does but what happens to that inventory? like i mentioned earlier i purchase raw material from one supplier than they ship it to another supplier for paint.....do i add the cost of the raw material and paint as a standard cost? and keep current cost for raw and paint?

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Community Member on at

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have a question……if i generate a drop ship order for raw material to a painter…..let’s say i have a cost of 40 dollars for raw material and 20 dollars to get it paint….i generate a drop ship order for the raw material and a standard purchase order for the paint….when i receive the paint po it would only have a cost of 20 dollars but in actuality that material is worth 60 dollars….how do i capture the total cost?

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Mahmoud Saadi 32,738 on at

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The items on a drop ship Purchase Order are shipped directly to the customer, the main essence is not to have the items physically received in your stores, as if you are purchasing items on behalf of the customer.

For your case, there could be multiple scenarios to consider. The one that I am convinced with is to have the items defined in inventory management module, both the steel raw materials and the painting. These items can be purchased normally from different vendors and received to your inventory stores, then you can use the "Assembly process" process which starts by configuring the Bill of Materials according to which the finished product is processed. After receiving the raw materials (steel and painting), you can process with the assembly which in turn will take out the RM from your inventory and enter finished goods products (painted steel, which should be defined as an item as well).

One note, the assembly process is not part of the manufacturing module. It is part of the inventory module to facilitate such simple processes.

You may consider this suggestion on a test environment and check how suitable it would be for your case.

A good reference to check the Assembly Process in general

Please never hesitate to share any further concerns,

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babubaskaran@outloo... 12 on at

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Hi,

Do you wanted to receive this into your inventory. I would recommend if you have GP Manufacturing order and use outsource PO with two sequence one for raw material and one for painting and receive the PO so that you capture the cost correctly and achieve what you wanted.

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I wonder if i can just add the raw material cost to the standard cost of the painted material....raw = Current cost of $40, painted = current cost of $20 so standard cost of painted would be $60? you think this would work? we are in our infancy stages of implementing and management does not want to play with BOM's.

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