Drop shipment (SAP Business One)

A method in which a product is shipped directly from the supplier to the customer without the need for the company to hold stock.

To sell a product in drop shipments, it must be assigned to a drop ship warehouse in SAP Business One.
The drop-ship warehouse is not physically present, but it is the means by which SAP Business One can create a drop-ship item.

Notes:

Modification of the status of "drop-ins"

If a warehouse has been assigned the characteristic "drop shipment" and has already been transaction the configuration can no longer be changed.

Stock postings according to warehouse type

When specifying "drop-ship warehouse" as a warehouse in documents no Stock postings are made. If the goods are managed not only in a drop-ship warehouse but also in another warehouse, the posting of the stock entries is based on the warehouse selected in the documents. If a "real" warehouse is specified, a stock entry is made.

disposition

The mainline bearings are used for the Disposition run does not come into play.

Continuous inventory management

Journal entries are created using documents that relate to an "external warehouse". Expenses and income are posted against invoices.

Update customer orders

When updating a Customer orderlinked to an order that indicates a drop-ship warehouse, you will receive a message:
"Item is linked to a procurement document. Would you like to continue?"
To update the customer order, but not the purchase order, select "Yes".

SAP B1 blog