Explain The Setup Involved In Drop Shipment Process?

1.	Explain The Setup Involved In Drop Shipment Process?
Answer» Drop Shipment is a process where the customer places a purchase order on a company and the company instructs its supplier to directly ship the items to the customer. Drop Shipment Process Steps Create a Sales Order with LINE where the line source is External Book and Schedule the Sales Order Run workflow BACKGROUND Process Now the line status will be in Awaiting RECEIPT LOGIN to the Receiving Organization (Purchasing) who has been setup as an Approver Run Requisition Import Process Auto create to Create Purchase Order Approve the PO Receive against the purchase Order Run Auto Invoice Verify Invoice in Sales Order Oracle Order Management uses purchase orders to outside SUPPLIERS that are automatically generated from sales orders for goods supplied directly from the supplier. The external supplier ships the goods directly to the 3rd Party customer and confirms the shipment through the use of an Advanced Shipment Notice (ASN).

Answer»

Drop Shipment is a process where the customer places a purchase order on a company and the company instructs its supplier to directly ship the items to the customer.
Drop Shipment Process Steps
Create a Sales Order with LINE where the line source is External
Book and Schedule the Sales Order
Run workflow BACKGROUND Process
Now the line status will be in Awaiting RECEIPT
LOGIN to the Receiving Organization (Purchasing) who has been setup as an Approver
Run Requisition Import Process
Auto create to Create Purchase Order
Approve the PO
Receive against the purchase Order
Run Auto Invoice
Verify Invoice in Sales Order
Oracle Order Management uses purchase orders to outside SUPPLIERS that are automatically generated from sales orders for goods supplied directly from the supplier. The external supplier ships the goods directly to the 3rd Party customer and confirms the shipment through the use of an Advanced Shipment Notice (ASN).

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