If you are using, or intend to use the drop ship in Microsoft Dynamics GP, you need to be aware of the availability of the Shipment Notification tool which is included at no charge in the Professional Service Tools Library (PSTL). Shipment Notification is used in conjunction with Sales Order Processing and allows for drop ship sales orders to be transferred to an invoice before enter/match is complete on the purchase order for the drop ship sale.
In the past, the sales invoicing process could not be completed without breaking the link established to the sales line item’s corresponding purchase order. Breaking the link creates issues when reconciling the Accrued Drop Ship account because corresponding costs from the purchase order will no longer tie to the line item costs on the sales invoice when it is posted. Therefore, you were forced to wait to send an invoice because it could not be created for drop ship items until the vendor’s invoice had been received.
Once installed, Shipment Notification is a simple one click step that will allow the sales invoice to be created without breaking the purchase order link. Your customers can now get billed immediately, and you no longer have to wait for your vendors invoice to complete the sales order process. For more information on the use of Shipment Notification, see my previous blog, titled The Dynamics GP Drop Ship Process.