Create drop shipment purchase orders

Article • 3/20/2025 • 5 min read

The system facilitates the creation of drop shipment purchase orders by using the Drop Shipment action from the sales order header and line.

  1. Open the Sales Order page.
  2. Fill in the required fields on the header.
  3. On the Lines FastTab, in the Drop Shipment Vendor No. field, select the required code from the dropdown menu. Subsequently, the corresponding Drop Shipment checkbox gets selected automatically.
  4. In the Location Code field, select the required drop shipment location. You can also choose to leave this field blank.
    If the Drop Shipment Vendor No. field is empty after specifying the location code, the Drop Shipment Vendor No. field value is sourced from three pages in a hierarchical manner. Firstly, the system checks the Stockkeeping Unit Card page for a vendor number; if available, it populates the Drop Shipment Vendor No. field value. If not found, it then checks the associated Location Card page. If a vendor number is present, it fills the Drop Shipment Vendor No. field. If still not found, it proceeds to the associated Item Card page, populating the field if a vendor number is present.
  5. On the action bar, select Actions > Functions > Drop Shipment > Create Purchase Order.


    On the Lines FastTab, select Line > Functions > Drop Shipment > Create Purchase Order from the action bar to create the drop shipment purchase order for the selected sales line.
    The Requisition Worksheets page opens if the Skip Requisition Worksheet toggle is turned off on the Drop Shipment Setup page. You must fill in the required details to create the purchase order. To know more about Requisition Worksheet, see Create special orders.

You can also post the sales order fully or partially for the Ship, and Ship and Invoice options. The drop shipment purchase order is created. If the sales order lines involve multiple drop shipment vendor numbers, the system generates multiple drop shipment purchase orders. On the Lines FastTab of the purchase order, select Order > Drop Shipment > Purchase Order to view the newly created drop shipment purchase order.

The below points detail the process following the creation of a purchase order for drop shipment.


You cannot perform the drop shipment activity when combining shipments into invoices using the Combine Shipment By report. To know more about combine shipments, see Combine Shipments Setup.

Undo the drop shipment

To undo the drop shipment, follow the below steps.

  1. Open the required Posted Sales Invoice page.
  2. On the action bar, select Actions > Functions > Undo Drop Shipment.
    A dialog opens. In the Return Reason Code field, select the required option from the dropdown menu. The reason code will be updated on the sales return and purchase return orders.
    Undoing the drop shipment will post the sales invoice and purchase invoice for shipped and received items that were not previously invoiced. It will also trigger the creation and posting of a sales return order and purchase return order, followed by the creation of a respective sales order and purchase order, which is irreversible. After performing the Undo Drop Shipment action, the system reverts the quantity and amount values in the posted sales invoice lines.

As a result, the system creates the corrective lines on the following documents:

Return the drop shipment

To return the drop shipment, follow the below steps.

  1. Open the required Posted Sales Shipment page.

  2. On the action bar, select Actions > Functions > Return Drop Shipment.
    A dialog opens.

  3. In the Return Reason Code field, select the required option from the dropdown menu. This reason code will be updated in the associated sales and purchase return orders.

    Returning the drop shipment will trigger the creation and posting of a sales return receipt and purchase return shipment.

    • If all lines in the posted sales shipment are fully shipped and no invoice has been posted, the system will proceed with reversal.
    • If any line in the posted sales shipment is partially shipped, an error occurs stating that partial drop shipments cannot be reversed.
    • If an invoice has been posted for the drop shipment order, the system will display an error. It is recommended that you use the Undo Shipment action on the Posted Sales Invoice page.