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J
Jess674
January 31, 2025
Question

Sales orders and drop shipments

  • January 31, 2025
  • 1 reply
  • 0 views

Hello,

We just switched to QB Enterprise from another accounting software this month.

 

We purchase from a vendor and drop ship to customers. We enter a sales order with the customer's order (the items are set up as a service) and  then create a PO for the vendor with the drop shipment.We invoice the customer when we receive the bill from the vendor. What is the correct way to invoice the customer, make sure that the sales order is closed and the bill we received from the vendor is passed on to the customer? I want to be able to run a report to make sure the customers are being billed (it was missed in the past with the other software).

 

Thanks in advance!

1 reply

tmartinkovic
tmartinkovic
January 31, 2025

We do distribution, and have inventory, but the process we use for drop ships should be similar. We create the Sales Order, and in the Sale order line, we have a Drop Ship site, and a "Linked PO" field, (new as of late last year) where we tie the PO to the Vendor.

We too, receive an invoice from the Vendor, which we Receive into the Drop Ship Site. Then we will create an Invoice (Create invoice in the Sales Order toolbar) from the Sales Order, which "Ships" the material from the Drop Ship site and invoices the customer. The Customer pays our Invoice.

We'll pay the Vendor invoice separately, and never "pass along" the Vendor invoice to the Customer.

To see what Sales Orders are still open, you can run a report in the Sales area of Reports, "Open Sales Order Report by Customer" which will show Uninvoiced Sales Orders.

J
Jess674Author
January 31, 2025

We just sold the manufacturing operations of the company and now are only 2 employees. The person doing  AR, receives the bill from the vendor which is the indicator that the SO can be closed. She then proceeds to invoice the customer. If she happens to miss or lose the invoice, the customer wouldn't be invoiced until someone notices the order is still open (this happened with the other accounting software) but we'd have to research to see if the order is truly open as we have many that remain open for a while.

 

Since the items are marked as billable, the balance will remain on the Unbilled Costs Report unless I go in and uncheck the billable box.

 

Sorry if I'm rambling. I'm trying to make sense of this myself and find a way to make sure the customers are being billed, and the SOs and POs are closed.

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