Document Type: Process Description Document Document Reference: Drop Ship Process Date:

Drop Ship Process

Process description

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

Document History
Version 1.0 1.1 Date Description of modification Draft Version

Version: Status: Control: Distribution list: Version: Status: Control: Distribution list:

1.0 Initial Version (draft)

1.1

Approval
Approval of Business Requirements Document Business Owner Business Project Manager Name: Signature:

Date:

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

Table of contents
Document History..............................................................................................................................2 Approval .............................................................................................................................................2 1 Drop Ship Process .......................................................................................................................4

1.1 Process description down instrument drop ship..........................................................................4 1.2 Process description export drop ship..........................................................................................8 2 General remarks .........................................................................................................................12

Drop ship process from an European point of view have been reviewed some time ago? By whom? And was declared not to be used anymore due to VAT and Intrastat declaration problems. The data I have used in the examples above are old data, which indicates the not too often use of these processes. However they work, so could be used as an indication for the US to investigate on.....12

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

1 Drop Ship Process

1.1 Process description down instrument drop ship
A standard order is created (order type ZSTD) with sales org. Exx1. Select partners. Before entering any parts, first fill out per line item the delivery plant and the item category TASD.

If you check the item schedule lines, you will find the schedule line category ZH :

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

Automatically a purchase requisition is generated.

If you display the purchase requisition you will see the item category S (third party) and account assingment category 2 (3rd party drop ship) that the supplying plant US21 automatically comes in and document type DI :

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

This purchase requisition is turned into a purchase order.

This purchase order is the trigger for the US to create an Intercompany sales order (order type ZIC1) :

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

On the ZIC1 order a delivery is generated and an invoice comes out. This invoice will be received on the purchase order.

The invoice receipt on the purchase order, is the automatic trigger to create the customer invoice on the original sales order.

So in this flow no goods receipt is done on the purchase order and no delivery is created on the sales order. And additionally there is a ZIC1 order flow from the US. As an example you can use sales order 410346 in D50.

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

1.2

Process description export drop ship

An export drop ship order (order type ZEXT) with sales org. EEU1. Select partners. If you enter a part automatically the item category TAS comes up.

If you check the item schedule lines, you will find the schedule line category CS :

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

Automatically a purchase requisition is generated.

If you display the purchase requisition you will see the item category S (third party) and account assingment category 2 (3rd party drop ship) that the supplying plant US21 automatically comes in and document type is NB :

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

This purchase requisition is turned into a purchase order.

This purchase order is the trigger for the US to create an Intercompany sales order (order type ZIC1) :

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

On the ZIC1 order a delivery is generated and an invoice comes out. This invoice will be received on the purchase order.

The invoice receipt on the purchase order, is the automatic trigger to create the customer invoice on the original sales order.

So in this flow no goods receipt is done on the purchase order and no delivery is created on the sales order. And additionally there is a ZIC1 order flow from the US. As an example you can use sales order 1072462 in D50.

Document Type: Process Description Document Document Reference: Drop Ship Process Author: Date:

2 General remarks
Drop ship process from an European point of view have been reviewed some time ago? By whom? And was declared not to be used anymore due to VAT and Intrastat declaration problems. The data I have used in the examples above are old data, which indicates the not too often use of these processes. However they work, so could be used as an indication for the US to investigate on.