Defining Drop-Ship Warehouses 
In order to use the drop-ship feature, you must define at least one warehouse as a drop-ship warehouse.
Procedure
From the SAP Business One Main Menu, choose
Administration 
Setup Inventory Warehouses 
.In the Warehouses – Setup window, create a new warehouse. The Nettable checkbox is selected by default. Deselect this option and select the Drop Ship checkbox. If you want to manage the serial and batch items with a drop-ship warehouse, select the Manage Serial Numbers and Batches checkbox.
Enter the relevant data and add the warehouse to the system.
Note
You cannot change the setting of the Drop Ship checkbox after a drop-ship warehouse is recorded in an existing document.
End of the note.