Intercompany Purchases and Returns: Intercompany Drop-Ship Purchase

In MYOB Acumatica, companies within the same tenant can collaborate to fulfill customer orders through intercompany drop-ship purchases. This functionality allows a purchasing company to cover shortages by ordering goods from a selling company, with the items shipped directly to the external customer.

Applicable Scenarios

You may need to drop-ship goods through another company in the same tenant if one of the following conditions is met:

  • Your company has a shortage of the requested goods.
  • Another company is geographically closer to your customer, and drop shipping would reduce the shipping cost.

Processing an Intercompany Drop-Ship Purchase

In MYOB Acumatica, an intercompany drop-ship purchase order is typically processed as follows:

Tip: This process describes typical roles for each step. The roles in your environment may vary.
  1. Purchasing Company: The sales manager does the following:
    1. Creates a sales order for the external customer on the Sales Orders (SO301000) form.
    2. Adds a line with the required items.
    3. Selects the Mark for PO check box in the line, indicating that the order line was marked for purchasing, and selects Drop-Ship as the PO Source.

    The purchasing manager of the same company does the following:

    1. Clicks Create Purchase Orders on the More menu of the Sales Orders form.
    2. Generates a purchase order with the selling company as the vendor on the Create Purchase Orders (PO505000) form.
    3. Removes the purchase order from hold on the Purchase Orders (PO301000) form.
  2. Selling company: As soon as the purchase order is assigned the Open status, the manager of the selling company does the following:
    1. Opens the Generate Intercompany Sales Orders (SO504000) form and generates a sales order for the purchase order.

      On the Addresses tab of the Sales Orders form, the system inserts the address of the external customer into the new sales order.

    2. Creates a shipment for the intercompany sales order.
    3. Confirms the shipment when the external customer receives the goods from warehouse of the selling company.
  3. Purchasing company: On confirmation of the shipment to the external customer, the purchasing manager does the following:
    1. Opens the Generate Intercompany Purchase Receipts (PO504000) form and generates a purchase receipt for this shipment.
    2. Releases this purchase receipt on the Purchase Receipts (PO302000) form.

    The sales manager of the same company prepares an invoice for the external customer on the Invoices (SO303000) form.

  4. Selling company: The sales manager does the following:
    1. Prepares a sales invoice for the purchasing company based on the intercompany sales order on the Sales Orders form.
    2. Releases a sales invoice on the Invoices form.

      The AR invoice becomes available on the Invoices and Memos (AR301000) form.

  5. Purchasing company: As soon as the AR invoice is available, the accountant does the following:
    1. Opens the Generate Intercompany Documents (AP503500) form and generates an AP bill based on this invoice.
    2. Releases the AP bill on the Bills and Adjustments (AP301000) form.

At this point, the intercompany drop-ship purchase is completed.

Workflow of the Intercompany Drop-Ship Purchase

For an intercompany drop-ship purchase between the branches of two different companies, the typical process involves the actions and generated documents shown in the following diagram.