Drop shipments are sales transactions involving merchandise being shipped directly from the vendor to the customer. Since this merchandise is never received inventory, different procedures are required to ensure that the sales and receipts transactions are correctly recorded in the system.

The method for recording drop shipment sales in Spectrum will vary depending upon whether or not you have the Purchase Order module installed.

The two methods for recording drop shipments are presented below. Your decision on which method to use should be based on a review of current personnel and procedures. Regardless of whether or not you have the Purchase Order module, it is necessary to enter the cost of the drop-ship item during Order Entry and Invoice Entry in order to correctly track amounts in the General Ledger and Order Processing for drop shipment transactions.