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On this blog we will cover stories from all around the Exact ecosystem.

Posts Tagged ‘drop shipment’

Drop shipments in controlled release

Written by Marco Kastrop on . Posted in Exact Online

Earlier I have announced that the Trade development team was working on the new functionality to support drop shipments. This functionality is currently in controlled release, which means that a selective group of customers is piloting this new functionality and will provide us valuable feedback which we will evaluate before making it available for all Exact Online Trade customers.

As explained in my previous blog: drop shipment is the process whereby goods are delivered by your supplier straight to your customer without your intervention. Translated into functionality this means that from the sales order (or group of sales orders) you can initiate purchase orders (back to back ordering). If a sales order line is marked as to be drop shipped (a sales order line will be marked automatically based on business rules) then when generating the purchase order system will mark it as a drop shipment purchase order. The main difference between a drop shipment purchase order with a normal purchase order is the delivery address. Also sales order lines marked as to be drop shipped will not appear in your normal goods delivery screen neither will the drop shipment purchase order lines in the goods receipt screen. Instead a new screen for creating drop shipment deliveries by your supplier will take care of the movement of products from your supplier to the customer.

Some additional features:

  • Quantity in drop shipment is visible on the stock positions overview
  • On the cockpit on your To Do-list you will be notified when drop shipments are late for delivery
  • Financially we will keep track of all in and out transactions on a separate ‘Goods in transit’ general ledger

Stay tuned for some more updates relating to Exact Online. If you have any questions or remarks, do not hesitate to post them!

How to handle deliveries that are sent directly from your supplier to the customer?

Written by Marco Kastrop on . Posted in Exact Online

Soon to be available for every Exact Online Trade customer is the functionality to purchase based on existing sales orders (back to back ordering). Once you have created a (number of) sales order(s), you can get a purchase order advice for selected order(s) and generate purchase orders.

As an extension to back to back orders we are now developing functionality to support the drop shipment process. For this purpose we therefore have visited customers from different sectors (varying from trading companies in medical needles, Christmas boxes to plastic waste and fertilizer) with a questionnaire to see whether our thoughts of the functionality match with the business needs of our clients. Overall I can conclude that we hads a pretty good idea of required functionality, but nevertheless the discussion with our customers had significant impact on the development and outline of the functionality.

What we try to achieve with drop shipment functionality is to keep the stock movements visible, but separate it from the normal stock in –and outflow. Also financially the plan is to account in a different way (making use of ‘Goods in transit’-account) and using the actual purchase price (instead of using cost prices) for drop shipments. If we also can create an overview that will give margin insight (difference between sales and purchase price) then I am sure that we will have a very powerful solution for all our trading customers. The functionality is to be expected in H1-2012!

Thanks and a happy 2012!