How do I create shipments and invoices for a dropship order?

Overview

When a sales order is identified as a dropship order (once you've either created a P/O from a P/O Proposal or routed the items in that order), ERP creates a dropship purchase order (P/O) tied to your vendor.

From that P/O, you will create:

A dropship shipment, and then
A dropship invoice

Note: You must create the shipment before you can create the invoice.

Part 1 — Open the dropship purchase order

Go to ERP → Purchasing → PO Management.

You’ll land on the Purchase Order List.
Locate the dropship PO you want to work with (use Search By or More Filter if needed).
Click the PO Number to open it.

Part 2 — Create the dropship shipment

Inside the PO, go to Action → Add Dropship Shipment.

Click OK when prompted.

A new Dropship Shipment tab will open with required fields.

Required fields

Shipment Number
Most users reuse the dropship PO number here.
Carrier
Class (shipping class)
Tracking Number
- Must be unique — duplicates are not allowed.

Complete the shipment

Fill out all required fields.
Click Save.

Click OK.

Prompt to create an invoice

After saving the shipment, a pop-up will ask:
“Do you want to create dropship invoices for this dropship shipment?”

Click Yes → continue immediately to invoice creation
Click Cancel → create the invoice later from PO Management
(instructions in Part 4)

Part 3 — Create the dropship invoice (if creating it immediately)

If you clicked Yes, a new Dropship Invoice tab opens.

Complete the invoice

Enter the Vendor Invoice Number in the Invoice Number field.
Enter pricing for the line items if needed.
If items are taxable, toggle Taxable to On.
Add any discounts, shipping, or handling at the bottom.
Click Save, then click OK.

Note: Once the invoice has been saved, you'll be able to see your A/P Bill either in the Activity tab of the Dropship PO or by going to Accounts Payable > A/P Bill Management.

Note: While the shipment record is still open, the invoice cannot be closed. You may only close an invoice after the associated shipment is closed

Part 4 — Create the invoice later (alternative method)

If you chose Cancel at the shipment screen:

In PO Management, reopen the dropship PO.
Go to Action → Add Dropship Invoice.

Click OK.

The same invoice screen will appear.
Enter the invoice details (as in Part 3) → Save → OK.

Part 5 — Close the shipment

To close the shipment:

Locate the Shipment.
Change mode from Edit to Close.
Click the blue Close button.

Click OK.

Part 6 — Close the invoice

Once the shipment is closed:

Locate the Invoice.
Change from Edit to Close.
Click the blue Close button.

Click OK.

Warning: If the Dropship Shipment isn't closed, you cannot close the Dropship Invoice. Best practice would be to close the Dropship Shipment right after you create and save it.

Final outcome

Once the shipment is marked Shipped, the dropship PO is considered Received.
After the invoice is closed, the PO will ultimately move to a Closed status.