AP: Creating a Drop Shipment for a Job

You can use Drop Shipments to enter purchases for a Job or Customer that are delivered directly to the site or customer by the Vendor. You may create a drop shipment from the Accounts Payable module or the Inventory module.

  1. Verify that the Update Drop Shipments From Inventorycheck box is selected in Accounts Payable Defaults. When this check box is selected, the system will update inventory activities from the drop shipment screen to the General Ledger, with a debit to the Expense Account (set up in the category for each of the items dropped shipped) and a credit to the Drop Shipment Clearing Account. When entering the Accounts Payable invoice, the General Ledger distribution should be a debit to the Drop Shipment Clearing Account and credited to the Accounts Payable Trade Account.

    2. Important:  Do not distribute the Accounts Payable invoice to the inventory asset account in the Accounts Payable Invoice Distribution grid. If you distributed this to the inventory asset account and the Update Drop Shipments from inventory prompt was marked in Accounts Payable defaults, the Drop Shipment Clearing Account would never balance.

  2. From the Inventory menu, select Drop Shipment. Verify the Transaction Type is Drop Shipment.
  3. Type or select the Warehouse responsible for the drop shipment.
  4. Enter the original date of issue for the drop shipment.
  5. Select the desired Status for the current state of the drop shipment record. Your choices are:
    • Open
    • Not Approved
    • Approved
    • Ordered
    • Received / Closed

      • Note:  Use Received / Closed when the item has been received at the job site. Once a Drop Shipment is marked Received / Closed, the transaction becomes an Activities record in Inventory and available to process.

    • Closed / Not Shipped
  6. Select a Type from the Type list and type or select the Requested By name, if applicable.
  7. Type or select the Approved By name, if applicable.
  8. Enter the Approved Date, as applicable.
  9. Leave the PO Number field blank; it is automatically assigned by the system. If you entered a Starting Purchase Order Number in AP Defaults, the system searches for the next available number, in increments of 1, and assigns it to the PO or Drop Shipment record.
  10. In the Request Print Status list, click Print or Don’t Print. Type the Vendor Number in the Number field, or use the Find Feature to locate the Vendor Number, and press Tab.
  11. Verify the Vendor Information. The system selects the Link check box by default, which defaults the information from the Vendor Master File. If you do not want to use the information in the Vendor Master File, clear this check box.
  12. Click the Job tab. Type the Job Number in the Number field, or use the Find Feature to locate the Job Number, and press Tab
  13. Verify the Job Information. The system selects the Link check box by default, which defaults the information from the Job Master File. If you do not want to use the information in the Job Master File, clear this check box.
  14. Click the Details tab. Under the Details grid, click the Add New button to begin adding items to include on the Drop Shipment.
  15. Type the Item Number, or use the Find Feature to locate the Item Number, and press Tab. If the Item has Vendor Pricing in the Item Master File, the Price field will populate.
  16. Type the Quantity you want to order, and press Tab. If the Item had Vendor Pricing the system calculates the Extension amount.
  17. If the Item did not have Vendor Pricing, then enter the Price. The system will calculate the Resale Price and based on the information in the Item Master File, and then calculates the Extension amounts.
  18. Click the Customer tab. Type the Customer Number who is requesting or ordering the items, or use the Find Feature to locate the Customer Number, and press Tab.
  19. Verify the Customer Information. The system selects the Link check box by default, which defaults the information from the Customer Master File. If you do not want to use the information in the Customer Master File, clear this check box.
  20. Click the Other tab. Enter the GL Number and Job Number distribution to have available for importing when entering the Vendor invoice into Accounts Payable Invoice Entry for this Drop Shipment. You are not required to enter the GL Distribution information.
  21. Select the P.O. Message and click Close to save the record.