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Procedure documentationCreating Sales and Purchase Orders for Drop Shipping Locate this document in the navigation structure


When you select a drop-ship warehouse in a sales order document, SAP Business One immediately opens a purchase order for ordering the goods from one of your vendors. Creation of documents involving drop-ship warehouses does not create any inventory postings.


You have defined at least one warehouse as a drop-ship warehouse.


  1. From the SAP Business One Main Menu, choose   Sales – A/R   Sales Order  .

  2. Enter the required customer and item data.

  3. Select a drop-ship warehouse for one or more of the ordered items.

    Note Note

    Click Form Settings (Form Settings) and add the Whse column if it does not appear in the sales order.

    End of the note.
  4. On the Logistics tab, select the Purchase Orders checkbox. This option creates purchase orders for all the items that appear in the sales order and not only for the drop-ship items.

  5. Add the sales order to the system.

    The Purchase Order Confirmation window opens.

    This window enables the automatic creation of a purchase order based on the sales order that you just added. A purchase order created using this window can include all or part of the items in the sales order.

    When you create a purchase order in this way, it is identical to any purchase order you create in the Purchase Order window.

    Note Note

    You cannot use this window to add items that are not included in the base sales order.

    End of the note.
  6. For items that you want to include in the purchase order, if the BP Code field is empty, select a vendor from the BP Code dropdown list. Then, select the item rows and click Add (Add).

  7. To save your changes, choose the Add button.


A purchase order is created; the sales order retains its Open status.

Note Note

  • When you select an item defined as a BOM in a sales order, the Purchase Order Confirmation window displays the bill of materials' child items. This applies only to a sales BOM.

  • When you update a sales order linked to a purchase order that contains a drop-ship warehouse, the following message is displayed:

    Item is linked to a purchase order that has a drop-ship warehouse. Continue?

    If you choose Yes, SAP Business One updates the sales order without updating the purchase order.

    Every update you make to an existing sales order that has not been linked to a purchase order, opens the Purchase Order Confirmation window, displaying item rows that have not yet been copied to a purchase order.

End of the note.