This section provides a brief description of Vendor Shipment processing and it explains how accounts receivable invoices are created by the process. Vendor shipment processing is described in more detail in the documentation for the Purchasing, Sales Order Entry and Product Management Systems.
Vendor shipment sales orders are used to handle sales of product that are shipped directly from your vendor to your customers. Items and customers can be flagged to allow, force, or prevent vendor shipment processing.
Vendor Shipment - Order Entry
A vendor shipment sales order line is entered in the same way as a normal sales order, but it is flagged as a vendor shipment. The Vendor Shipment flag may be defaulted based on the customer or item being processed, or it may be set manually. As a vendor shipment sales order line is saved, the system automatically creates a po requisition for the sales order line.
Vendor shipments do not reserve inventory and they are not allocated to from inventory (the items are being shipped directly from the vendor). The vendor shipment lines are saved as allocated, but the open lines are not included in your inventory reserved, total reserved or allocated quantities in inventory.
Vendor Shipment - PO Requisition Processing
The PO requisitons that are created for each vendor shipment sales order line are converted to purchase orders by the purchasing department. The Purchase Orders which are created automatically load the customer information and item information that is required for the vendor to process the shipment. This information includes the customer shipto address, the customer po number, the shipping method for the shipment, and the items and quantities to be shipped by the vendor. Comments and other information – such as sales tax certificates, are also moved over to the PO as appopriate.
Vendor Shipment – Order Completion
The Purchasing system is used to complete vendor shipment orders. Once the Vendor indicates that the product has been shipped to your customer, the purchase order to the vendor is used to complete the shipment.
The Purchase Order Management program allows the operator to quickly locate the PO to the vendor, confirm the items that were shipped, and add any other information, such as shipping costs and charges, comments and tracking numbers. The operator can then hit save and complete the shipment. The system creates an accounts receivable invoice for the customer, and it records a liability to the vendor for the amount of merchandise shipped by the vendor. Invoices that are created by vendor shipment processing will have an Invoice Document Type of OI or IN.