A Vendor Shipment or Vendor Drop Shipment order is an order that will be fulfilled directly by your vendor. When a customer sales order is entered as as a vendor shipment, the system will automatically create a po requisition for the item. This PO requisition is converted to a purchase order to the vendor. This PO is used by the vendor to ship the goods directly to the customer. The Vendor ship SO and PO lines are linked and there are restrictions on editing the documents once they have been created. Once the vendor ships the goods to the customer, the PO is used to invoice the shipment to your customer. This process also creates vendor shipment transaction records that can be matched up to the vendor invoice
StreamV allows you to optionally process Vendor Shipment Sales Order Lines. A Vendor Shipment Order Line is a sales order line that will be completed by your vendor – who ships the product being ordered by the customer directly to the customer and then invoices you for the shipment. Vendor Shipment Order Lines are not fulfilled from your in stock inventory quantities, and they are not included in the Reserved, Total Reserved, or Allocated quantity for the item. Vendor Shipment Processing is discussed in detail in the documentation for the Purchasing System and this section provides only a brief discussion of how vendor shipments are processed by the inventory reconciliation and inventory allocation routines.
As each Vendor Shipment Sales Order Line is entered, the system automatically saves the sales order line as fully allocated.