Drop Shipping with Sales Order

Versa supports drop shipping where you would create a purchase order from a sales order and have the supplier ship directly to the customer. 

You can create a dedicated facility to designate dropship sales orders to. This helps you identify and separate dropshipped sales order from  ship from stocks. It is not required to set it up for dropshipping however.

To support creating PO from sales orders, activate the setting Allow Conversion of Sales Orders to Purchase Orders and Copy Ship-to address from Sales Order to Purchase Order when Converting from Setup menu, Sales Orders.

If you want the goods to be shipped to your warehouse instead of directly to your customer. You should uncheck Copy Ship-to address from Sales Order to Purchase Order when Converting so you can choose your warehouse location as the ship to address for the PO.

Once the purchase order is created, you can send it to your supplier. Once they have notified you the order has been shipped. 

Option 1

You receive the purchase order and then ship the sales order. 

Create the invoice as part of the shipping process for sales order.

Option 2

Ship the sales order directly and receive PO automatically. 

For a quicker way, make sure the facility the sales order is assigned to has the option 'Allow buy and sell, drop ship' selected (from Products menu, setup, facilities, edit facility). This will give you additional option to receive the PO at the same time the SO is shipped (on the shipment page). This way the PO is marked as received as the same time the SO is shipped. The only remaining step after the SO order is shipped would be to create the bill from the PO receipt.

Create Bulk PO from Sales Orders

If you prefer to create purchase orders and have all products from all dropshipping sales orders combined into one PO per supplier, you can use the option to automatically create POs from open SO page  (logistics menu, Open SO page). This button will only appear for facility that have the dropship only setting on. 

When this button is clicked, the system will look at all outstanding sales orders in the facility currently selected at the top of the page. Create one PO per supplier and combining the products from all sales orders.  This option should only be used when you are expecting the suppliers to show all the products to your location first and you would then ship out sales orders to the customers.