Vendor Shipment Processing Overview

This section describes how Vendor Shipments are pricessed in StreamV. 

Vendor Shipments are used to process sales orders that will be filled by your vendor shipping goods direct to your customer (the items processed as vendor shipments are never actually received into any of your warehouse locations).

Vendor Shipments are created by setting the vendor ship flag in a sales order line to Y (this can be done automatically or manually based on the item and customer being processed).

Vendor Shipment fulfillment is primarily used for stocking inventory items (items that are tracked by the inventory control system).  Nonstock items can also be processed as vendor shipments, but the vendor ship flag for nonstock order lines is primarily used to allow invoicing the customer for charges such as labor, or shipping. 

There is also an option (discussed later in this section) that allows you to flag a nonstock order line as a vendor shipment.  This option allows you to add non-inventory based charges to the customer order (i.e. special handling charges, freight charges, etc) and the vendor ship flag for a non-stock sales order line is mainly used to determine the picking method for the line.

The basic steps for processing a vendor shipment order are briefly listed below and they are covered in more detail in the following sections.

      Sales Order Entry: The operator enters a vendor ship sales order (one or more lines for items to be purchased from one or more vendors).  The Vendor shipment sales order can contain only vendor shipment lines, or it can contain a mix of vendor shipment and non vendor shipment lines.  The operator entering the order can add purchasing notes for each line and for the entire order.   The operator can also optionally enter the Vendor, Vendor Item# and Manu Item Number for the item to be purchased (if it is different that the default information for the item). As the vendor shipment sales order is saved, the system automatically creates PO Requisition records that are linked to the sales order.  The sales order is also audited and placed on hold if necessary (for credit, terms, past due acct, etc).

      Hold Release: Credit releases the sales order.  You may not process a vendor shipment sales order until the order has been cleared of any holds (this prevents you from telling the vendor to ship something to your customer, until you can review and approve the order).

      Convert the PO Requsitions to Purchase Orders:  The Purchasing Department converts the PO Requisition(s) for the vendor shipment sales order lines to Purchase Orders.  The System automatically moves the information from the customer sales order (ship to address, customer po number, purchasing notes), to the PO as it is created.  The Price and other information in the PO Requisition line default but can be changed as required before the requisition is converted.

      Send the PO to the Vendor: Purchasing sends the Purchase Order(s) for the shipment to the vendors who will be sending the items.

      Receive notification the items were shipped: The vendor notifies you that the items have shipped and may forward tracking and other invoice information.  This notification and other information can be received manually or automatically (via EDI).

      Invoice the Customer: The Purchasing Department Invoices the Vendor Shipment Sales Order by processing the appropriate Purchase Order Lines.  The Operator can select the PO in the PO Management program and use the Invoice Vendor Shipment option to bill the customer for the items delivered by the vendor.  The PO items and quantities on the PO can be partially or completely invoiced based on the items shipped by the vendor.  The operator invoicing the shipment can enter a shipping charge and cost, and shipment tracking information to the Invoice.  As the vendor shipment PO is invoiced, the system creates an Invoice to the customer for the items delivered by the vendor, and it creates a vendor shipment inventory transaction to record the sale and the delivery of the product by the Vendor.  The Vendor Shipment Inventory Transaction is treated as a simultaneous receipt and shipment of the items and the items are never added to your inventory.  The Inventory Activity record is posted to the GL.

      Process the Vendor Invoice.  The Vendor Shipment Inventory Activity records created when the customer was invoiced are also used to validate the vendor AP invoice when it is received.  The Vendor Shipment transactions are matched up to the vendor invoice as it is created, and the items and quantities shipped can be viewed from the Vendor Invoice once it has been saved. 


Vendor Shipments - Sales Order Entry

Vendor Shipments - Hold Processing

Vendor Shipments - Shop Order Entry

Vendor Shipments - Requisition Creation

Vendor Shipments - Purchase Order Creation

Vendor Shipments - Invoicing/Order Completion

Vendor Shipments - Accounts Payable Processing

Vendor Shipments - Cost Of Sales/Commissions issues

Vendor Shipments - Non Stock Items