Drop shipping has become a popular fulfillment strategy for e-commerce businesses. Instead of holding inventory, businesses can partner with suppliers who ship products directly to the customer. This minimizes risk, reduces overhead, and allows companies to scale efficiently. If you’re using Microsoft Dynamics 365 Business Central, you’re in luck! Business Central offers built-in features to facilitate drop shipping, streamlining the entire process from order to delivery.
What is Drop Shipping?
Drop shipping is a retail fulfillment method where the retailer does not keep goods in stock. Instead, when a customer places an order, the retailer purchases the item from a third-party supplier who ships the product directly to the customer.
Why Use Dynamics 365 Business Central for Drop Shipping?
Microsoft Dynamics 365 Business Central is an ERP solution designed for small to medium-sized businesses. It offers comprehensive tools for managing finance, supply chain, sales, and customer service. When it comes to drop shipping, Business Central offers built-in features that help:
Automate purchase order creation based on sales orders.
Track inventory and order status across multiple suppliers.
Manage vendor and customer relationships seamlessly.
Integrate with e-commerce platforms for streamlined order processing.
Setting Up Drop Shipping in Dynamics 365 Business Central
Step 1: Create a Purchasing Code
Use the search bar to find "Purchasing Code".
Click "New" to create a new purchasing code.
Enter the “Code” and “Description” fields.
Enable the checkboxes for both "Drop Shipment" and "Special Order".
Drop Shipment Process
Step 2: Create a Sales Order
Search for "Sales Order" and create a new sales order with the necessary details.
On the Sales Line, select the Purchasing Code as "Drop Shipment".
- Note: If the Purchasing Code is already set on the Item Card, it will auto-populate on the sales line.
Once you have entered all relevant information, click "Release" to release the sales order.
Step 3: Create a Purchase Order
Search for "Purchase Order" and create a new purchase order.
Enter the required details in the Purchase Order Header, including Vendor, Location, and Date.
On the Shipment tab, enter the Customer Code in the Customer No. field.
In the Actions tab of the Purchase Order, click "Drop Shipment" > "Get Sales Order".
- The system will automatically populate the purchase order lines based on the linked sales order.
Post the Purchase Receipt.
- This action will automatically post the Sales Shipment.
Step 4: Post Sales Invoice and Purchase Invoice
After posting the purchase receipt, go to the Sales Order and post the Sales Invoice.
Next, go back to the Purchase Order and post the Purchase Invoice.
Need Help Getting Started? Contact ECLEVA Today!
At ECLEVA, we specialize in helping businesses implement and customize Dynamics 365 Business Central to fit their unique needs. If you’re ready to streamline your drop shipping process or need expert guidance on optimizing your Business Central setup, our team is here to assist you.
Reach out to ECLEVA today to learn how we can help you maximize your ERP solution and take your business to the next level. Let’s make your drop shipping process efficient and hassle-free!
Visit ECLEVA or contact us directly to get started!