Drop Shipment in Microsoft Dynamics® AX 2012

Drop Shipment

Drop Shipment

Seamless creation and update of Drop Shipment order chain Automatically create order chain construct of purchase order supplying sales order demand.

Automatic synchronization of delivery information from sales order to purchase order.

Complete visibility and tracing of sales order line demand to purchase order line supply.

Update of the purchase order from vendor delivery notification automatically updates the status of the sales order to delivered, releasing the sales order for customer invoicing.

Seamless integration between drop shipment and Intercompany Trade Business events in the delivering company automatically trigger updates in the selling company—

ensuring that orders are always in synchronization whilst ensuring minimum process cost.

Business policies for intercompany drop shipment allow for the tailoring of data synchronization, printing of business documents, and process execution to the needs of the business.

Drop Shipment in Microsoft Dynamics AX 2012 helps companies minimize inventory carrying costs and mitigate risk for products not sold. Drop shipment is a fulfillment method that allows companies to eliminate the cost of packing and shipping operations.

High level Drop Shipment Process

Vendor

External Customer

Delivery

Delivery Notification

Record Product ReceiptSales Order DeliveredInvoice Customer

Vendor Sales Order

Cannot fulfill from inventory

Sales department

Sales Order Purchase Order

High level Intercompany Drop Shipment Process

Distributionsubsidiary

External Customer

Delivery

Sales Packing Slip

Auto Product ReceiptAuto Packing Slip

Invoice

Auto Vendor InvoiceAuto Invoice

IntercompanySales Order

Allways direct to customer

Sales subsidiary

Sales Order IntercompanyPurchase Order

For additional information on Intercompany, please consult CCAX2012BV061

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presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft

cannot guarantee the accuracy of any information provided after the date of this presentation.

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CCAX2012BV056