Dynamics Gp Drop Shipping With Commitments Sop To Pop In Distribution
Formerly this midmarket ERP solution was known as Great Plains
. If you are in shipping and receiving, picking and packing business then you might be aware that industry standards allow your supplier to under ship or over ship in quantity range plus or minus ten percent. Lets briefly review how logic works in GP assuming that you are passing shipped quantity on your customers via drop ship and commitment logic:1.Commitment is the link between Sales documents such as Sales Orders for example and Purchase Order and it is good instrument in drop ship scenarios. When you are creating drop ship line in Sales Order there is no need to receive item in one of your warehouses and instead you are making a link between this Sales line and Purchase Order line which is commitment. Item goes directly from your supplier to your customer
2.Logic above is good news for somebody who is intermediate party in Supply Chain Management. However manufacturers might be short of quantity or ship slightly more comparing to what was ordered by your customer and translated to your supplier. Difference is often considered as acceptable if it doesnt exceed ten percent. Lets now review some FAQ
3.What happens if supplier under ships or lets say you have ordered two hundred but supplier shipped only hundred and ninety? In this case Purchase Order in POP will automatically stay open and respectively when you transfer Sales Order to Invoice the Order also stays open as ten items still need to be drop shipped to your customer. Is it a big deal? Probably not for somebody who has few orders per month. But if you are handling hundreds of orders per week or even per day then the procedure to open under shipped purchase order and sales order might look like unnecessary additional work and it opens the door to processing errors and even mess
4.Well, then what are the options here? At this time it seems like the solution out-of-shelf doesnt exist. Our recommendation is Dexterity customization which intervenes and acts with popup screens asking if you would like to close Purchase Order Line in the case of under shipping and close Sales Order Line if it is under shipped marking shortage as quantity cancelled. When supplied over ships then we recommend to popup screen asking if you like to increase quantity ordered in the Sales Order Line. Pretty elegant solution could be done in Visual Studio Tools as here you can call eConnect objects to edit Purchase Order as well as Sales Order. Dexterity chink is easy to maintain and distribute while VST opens the door to generic Microsoft Visual Studio C#, C++ or VB programmer to do the job
5.Observation about barcoding. Dynamics GP has distribution set of modules including Sales Order Processing, Purchase Order Processing and Inventory Control where warehouse management needs are addressed. However it could be considered as only partially open for direct barcoding. We recommend you to consider WMS extensions for GP
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