Creating a Drop Shipment
I thought I'd jot down some very basic high level notes here on how the overall drop shipment process works in Acumatica. I'm mainly doing this because I find the drop shipment process to be a little funny in Acumatica.
First, you have to mark the Sales Order Line for drop shipment by going to the Sales Orders (SO301000) screen, then going to the Document Details area, then checking the Mark for PO checkbox and selecting the Drop-Ship value in the PO Source field. This is what "flags" the line to be drop shipped. Funny thing here, you get an error unless you populate the Warehouse? Why do you need a Warehouse on a drop shipment? I'm not sure.
Next, go to the Create Purchase Orders (PO505000) screen, check off the line you need to order from your vendor, and click the PROCESS button. The purchase order that gets generated will have a Type of Drop Ship.
Once you receive confirmation from the Vendor that they have shipped the goods to the Customer, you can go to the Purchase Orders (PO301000) screen and choose ACTIONS -> Enter PO Receipt to create the Purchase Receipt against the Purchase Order. Releasing the Purchase Receipt will not generate an inventory transaction because this is a drop shipment. Also, this Purchase Receipt document will now appear under the Shipments tab of the Sales Orders (SO301000) screen.
Let's say you then enter the AP Bill from the Vendor. Do this like normal. One way is to use ACTIONS -> Enter AP Bill on the Purchase Receipts (PO302000) screen. When you release this AP Bill, you should get your first journal entry which should look something like this:
Debit Accrued Purchases
Credit Accounts Payable
Now you need to invoice the Customer. You can do this on the Sales Orders (SO301000) screen by selecting ACTIONS -> Prepare Invoice. When you release the Invoice, it should generate the second journal entry which should look something like this:
Debit Accounts Receivable
All is good right? Wait, how are we going to relieve the Accrued Purchases account? Ah, here is where another weird thing happened. When you released the Invoice in the previous step, it also created an inventory Issue document that has its own journal entry associated with it. If you go back to the Sales Orders (SO301000) screen and go to the Shipments tab, you should see a document in the Inventory Ref. Nbr. column. Open that document, then open the journal entry associated with it and you should see something like this:
Credit Accrued Purchases
Debit Cost of Goods Sold