Are you looking to streamline your distribution process by linking specific sales orders to purchases?
Microsoft Dynamics NAV/BC offers two solutions: Drop Shipments and Special Orders.
This guide will delve into each method, outlining how they work, and comparing them side by side to help your organization determine the best fit for its operations.
Need help configuring Microsoft Business Central for your organization? Get in touch today.
Understanding the Difference Between Special Order and Drop Shipment
Before diving into the specifics, clarifying the fundamental difference between drop shipments and special orders within the Microsoft Dynamics NAV/BC context is crucial.
Drop Shipment vs. Special Order: A Comparative Snapshot
To further illustrate the differences and benefits of each method, let’s look at a side-by-side comparison:
| ACTION | DROP SHIPMENT | SPECIAL ORDER |
| Can use requisition worksheet to create purchase orders | YES | YES |
| Allows for inventory to be verified by your personnel before receiving and shipping the material | NO | YES |
| Automatically posts the receipt of goods when posting shipment to customer | YES | NO |
| Prevents recording liability until after shipment of material is processed | YES | NO |
What is Drop Shipment in Business Central?
Drop shipment, according to Microsoft Dynamics NAV Help, is when a vendor sends items directly to your customer.
It was developed as a tool to help manage purchases shipped straight to customers.
With drop shipments, Dynamics NAV/BC automatically records the receipt of goods as you log the shipment of materials to your customers.
This feature is a time-saver if your business handles numerous drop shipment transactions.
What are Special Order Items?
On the other hand, a special order is a process for ordering specific non-stock items from a vendor.
These items are sent to your warehouse and then shipped to the customer, with or without items from another order.
This feature creates a strong link between purchase and sales orders to guarantee that specific vendor-ordered items reach your customer.
The Step-by-Step Guide to Drop Shipments in Dynamics NAV/BC
To create a drop shipment, follow these streamlined steps:
- Set up purchasing codes and your application setup, marking these to process drop shipment orders.
- After establishing the purchasing codes, create a sales order. On the sales order lines, list the items you’re purchasing and assign the appropriate purchasing code for drop shipments.
- Formulate a purchase order for the items you’re ordering. On the Shipping Fast Tab, specify the customer you’re selling the items to.
- Select the Actions button and choose the Drop Shipment function to generate sales orders. Alternatively, you can utilize the Requisition Worksheet and its attached functionality.
- Select the sales order for which you’re ordering material and confirm with “OK.”
At this point, you’ve successfully created a sales and purchase order for a single drop shipment.
Remember to verify that the ship-to address matches the customer records.
Once your vendor notifies you that the materials have been shipped, you can record the shipment to your customer through the sales order.
How to Effectively Manage Special Orders in Dynamics NAV/BC
Creating a Special Order involves the following steps:
- Set up purchasing codes and your application setup, marking these to process “Special Orders.”
- After setting up the purchasing codes, create a sales order. On the sales order lines, list the items you’re purchasing and assign the relevant purchasing code for special orders.
- Generate a purchase order for the items you’re ordering. On the Shipping Fast Tab, specify the customer for whom you’re buying the items.
- Select the Actions button and choose the “Special Order” function to generate sales orders. Alternatively, you can use the requisition worksheet and its attached functionality.
- Select the sales order for which you’re ordering material and confirm with “OK.”
You’ve now successfully created a sales and purchase order using the Special Order feature.
Ensure that the ship-to address on the PO originates from the Vendor record.
Once your warehouse receives the inventory, you can process the receipt of goods in the standard way.
Conclusion
In summary, the choice between drop shipments and special orders in Microsoft Dynamics NAV/BC depends on your business needs and operational processes.
Choose the method that best supports your distribution strategy for enhanced productivity and customer satisfaction.
Need help setting this up for your business? Get in touch with Accelerynt today – we want to help.
