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Drop shipment cancellation steps

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Dear All,

For a drop shipment which link a PO to SO. How to cancel it properly? below are the scenario.

Steps that I had done

I had cancelled the Posted SI – Successful.

As the PO is still open, un posted but received, I tried to delete the PO. and it will show error

5074.Error-2.png

Since it is received, I had then tried to post the PO, which is successful. And then I proceed to cancel the PO, it will show the error below

How do I resolve this issues? Which means what the proper steps to cancel a back to back transaction including the SO and PO

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Bryan Tschosik on at

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Hello,

Thank you for submitting your question to Communities.

I'd say you certainly have an interesting one here that I had to test through, and in the end, found a way to handle this. I will say the 'Cancel' feature introduced within the past few years has a few scenarios it quite can't handle because of the nature of the "under the hood" applications it does, in regards to Inventory. Canceling can handle more simple/plain/vanilla scenarios for the most part, but once in while I see where it won't quite work, as in the case with this specific example with Drop Ships.. But there are other ways.

Anyways, what you can do is instead of Canceling the Purchase Invoice, run the following steps:
1. Go to Purchase Credit Memos and create a new one.
2. Click Process > COPY DOCUMENT and choose the Posted Purchase Invoice you are trying to copy.
NOTE - You must have 'Exact Cost Reversing' = NO within Purchase & Payable Setup in order to continue with Posting of this Credit memo...
3. Be sure the Cost is the same as the initial Purchase Invoice that was posted.
4. Now you should be able to proceed and post the Purchase Credit Memo, which is basically a replacement for the 'Cancel'.

Hope that helps! Thank you:-)
Bryan

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Community Member on at

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Thanks, In the cases of drop shipment, where the receiving is done, if we do this way, is there any impact to the backend GL entries?

Because when a SO is ship and invoiced, and purchase receipt was done. if we only create a purchase credit memo, will it cause any backend issues? because posted purchase receipt is not reversed?

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Bryan Tschosik on at

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Hi,

I'm a little unsure of some of the specifics in your statement/question...but typically Yes, posting a Purchase Credit Memo will have an impact on the GL.

Do you have a copy of your production in a Sandbox or test company so you can test this to verify your results? Without knowing exactly the specifics, it is difficult to give a solid answer. But with your setup and processes run and where you are at in the process, a test in a copy of the production/sandbox should reveal results in what gets posted to GL.

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AR Seetharaman 20 on at

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After drop ship orders are posted, the sales shipment happens, the purchase receipts is posted automatically. Considering this scenario,

Step 1: Create Sales Return order and select the Item applies from to make sure to choose "Posted Sales Shipment". Post the Sales Return order

Now stock will be back in stock due to Sales return

Step 2 Create Purchase Return Order and select the "Applies to Item Entry and choose the Posted Sales Return Receipt and post the Purchase Return Order

Now the stock is nullified.

Please check if that works for you and provide your valuable feedback

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