Microsoft Dynamics Partners providing comparisons and opinions to professionals in the ERP/Accounting software selection process since 2009


Crestwood Associates

Dynamic GP’s Drop Ship Blanket Purchase Orders Save You Time

    Email | Print

    Dynamics GP Drop Ship Blanket PO

    Do you repeatedly order the same items from a vendor, then drop ship to the same customer?  If so, you can streamline your process and significantly reduce repetitive efforts using Microsoft Dynamics GP.

    Consider this scenario

    Client X has customers who purchase the same item number on a regular basis. Client X orders it from Vendor Y, they have the item drop shipped. Under their current process, they create a new sales order using the processing in the Sales Transaction Entry screen. Then, their purchasing department must contact Vendor Y and send a new PO every time. This involves many repetitions of essentially the same actions, which adds up to a lot of extra work.

    Making the Process Easier

    The good news is that, with the right process, you can save all those extra steps. Just use a Drop Ship Blanket Purchase order into Dynamics GP to send all the customer-related information to your vendor. Then, just follow the process below to add release lines to the PO each time the customer orders. From there, all that is left is to email the vendor and let them know what quantity to ship on what date.

    Drop Ship Blanket Purchase Orders, Step by Step

    When you are creating a Drop Ship Blanket Purchase Order, you'll need to specify both the vendor and the client for each drop ship. However, you can attach multiple sales orders to each PO as long as they're all from the same customer.

    The process is simple:

    1. Enter the Purchase Order.
    2. Choose "Drop Ship Blanket" when selecting Type.
    3. Check the "Allow Document Commitments" box.
      Drop Ship Blanket Order in Dynamics GP
    4. Enter the Vendor. A window allowing you to select the customer and customer address will appear.
    5. Enter the first line item and the overall quantity you expect to order over the course of this Purchase order. On the left, it will be noted that the Line Item Number for this line is 0. This means that it's a blanket line and that you cannot receive against it.
    6. If you know the dates that orders are expected, you can enter release lines immediately. You also have the option of entering release lines later.
    7. When your customer orders the item, enter the sales order. Make sure you check the D box on the line item to show that this is a drop ship. Save your sales order without creating a new purchase order.
    8. Go to Purchase Order Entry and choose the Purchase Order you created before.
    9. Enter a release line for the blanket item for the quantity of the sales order.
    10. Highlight the newly created release line, then click the link button in the column header on the right. This will be below the "Quantity Ordered" field. The Commitments window will appear.
    11. Click "Add Sales Doc." This will display the sales order you created. Highlight that order and Select.
      Drop Ship Blanket Order in Dynamics GP
    12. The sales order will now show up in the Commitments for Purchase Order window. When you click "OK," it will connect the sales order to the Purchase Order Release Line.
    13. Save the Purchase Order Entry by clicking "Save."
    14. When the vendor sends you their invoice, simply process it using your current process for drop ship orders. Entering the vendor's invoice will release the sales order so that you can, in turn, invoice your client.
    15. The Drop Shop Blanket Purchase Order allows you to continue entering new release lines and connecting them with sales orders from that same client. This will continue until the full quantity you specified in the blanket line is satisfied. Remember that the Blanket PO only connects to orders from a single client. You'll need to create a new one if you have repeat drop ship orders from a second client.

    Setting up Blanket Purchase Orders takes a small time investment up front, but saves you a great deal of time later on. Looking for more time-saving options? Get in touch by emailing us at

    Ask This Expert a Question / Leave a Comment