Drop Ship Between Subsidiary Companies

Drop Ship Between Subsidiary Companies

Scenario: Our company has two sister companies: SAS manages customers and sales orders, and BV manages inventory, purchasing, as well as some local clients.

We want to build the following workflow using ERPNext.

1. Client contacts SAS

2. SAS generates a Sales order

3. SAS turns the SO into a Purchase order for BV

4. BV receives PO > SO from SAS

5. BV Fulfils order from Stock to end-client

6. BV Invoices SAS

7. SAS pays to BV

8. SAS invoices end- client and bills

Answer: With the ERPNext Drop Shipment tool, you can handle this situation. Visit the following link to find out how ERPNext handles it.

https://erpnext.com/docs/user/manual/en/selling/articles/drop-shipping (with video)

Steps:

1. Make a sales order for the customer for the SAS Business. Make sure the item is marked for "Drop Shipment."

2. Add BV as a Supplier for the Organization SAS

3. Against a sales order, create a purchase order (PO). Choose BV as a Supplier in the PO. Nonetheless, the client's address will be used for shipping.

4. As they must pay BV, SAS will generate a purchase invoice.

5. SAS will generate a sales invoice for the customer against the initial sales order, and at a later time, generate a payment entry.

6. SAS will be added as a customer by BV. For them to record income in their accounts, they might create a sales order. Write a delivery note for the client. Create SAS with a sales invoice.