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Infor LX Tips, Infor LN Tips, BPCS Tips, Baan Tips, Infor M3 Tips & Infor ERP News, Crossroads Connection

George Moroses

Infor LX & BPCS Materials Tip of the Week: Drop Shipments

Infor LX provides a tightly integrated drop shipment processing capability. The product supports the creation, tracking, and management of customer drop shipment orders via the Order Management, Purchasing, and Billing applications.

The order processing professional initiates drop shipments during customer order creation. You can designate any order line for drop shipment if it meets user-defined drop-ship controls. If you designate a line as a drop-ship line, the system automatically creates a drop-ship request in purchase order processing.

When a buyer responds to a drop-ship request and creates a purchase order, Infor LX notifies the order processing department and cross-references both the customer order and the purchase order. After vendor shipment confirmation, Infor LX automatically notifies the Billing application to initiate the invoice process. Infor LX supports constant communication between the order professional, the buyer, and the billing professional throughout the order cycle.

Note that Order Management performs soft allocations for drop shipments to allow the MPS/MRP application to net customer order drop ship demand against open purchase orders. Drop Ship Confirmation, BIL650, removes the soft allocation. Order Management does not allow hard allocations for drop-ship items because the items are not physically received or issued from inventory.

Order Entry defaults to the Warehouse Master's Default Receiving Location for all drop ship lines to specify the profit center for inventory and general ledger transactions.

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