Drop Shipping with Sales Orders

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

Prepare the sales order and purchase order

You can create a dedicated facility for drop-ship sales orders. It helps separate drop-shipped sales orders from orders fulfilled from stock, but it is not required for drop shipping.

To create purchase orders from sales orders, open Setup, then Sales Orders, and activate Allow Conversion of Sales Orders to Purchase Orders and Copy Ship-to address from Sales Order to Purchase Order when Converting.

If the supplier should ship goods to your warehouse instead of directly to the customer, clear Copy Ship-to address from Sales Order to Purchase Order when Converting. You can then choose your warehouse location as the purchase order ship-to address.

After creating the purchase order, send it to the supplier. Continue when the supplier confirms that the order has shipped.

Complete the order

Option 1: receive the purchase order, then ship the sales order

Receive the purchase order, then ship the sales order.

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

Option 2: ship the sales order and receive the purchase order automatically

Ship the sales order directly and receive the purchase order automatically.

For a quicker process, make sure the facility assigned to the sales order has Allow buy and sell, drop ship selected. Open Products, then Setup, then Facilities, and edit the facility. The shipment page then gives you the option to receive the purchase order when you ship the sales order. The purchase order is marked received at the same time the sales order is shipped. After shipping, create the bill from the purchase order receipt.

Create bulk purchase orders from sales orders

If you prefer to combine products from multiple drop-shipping sales orders into one purchase order per supplier, create purchase orders from the open sales-order page. Open Logistics, then Open SO. This option appears only for facilities with the drop-ship-only setting enabled.

Versa uses the facility selected at the top of the page and reviews its outstanding sales orders. It creates one purchase order per supplier, combining the products from those sales orders. Use this option when suppliers will deliver products to your location first and you will then ship the sales orders to customers.