cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

What is the best method for entering drop ship orders?

We drop shipped an item from a supplier. We are paying this supplier for this order, and the customer has already paid us via our website. So would I enter this as a sales receipt, a 'bill', or even a credit card charge? And from what account? Is it considered an expense or income? Thank you for any help offered!
Solved
Best answer December 10, 2018

Best Answers
Highlighted
Level 15

What is the best method for entering drop ship orders?

on a bill you use the item tab, select the non inventory item

sales and purchases are two different things. when you use that non inventory item set up like I explained,
a purchase posts the cost to the expense account on the item screen, COGS
a sale to a customer posts the sales price to the income account on the item screen
then on the P&L, income is reduced by expenses to get net profit

if you are importing sales, then the import should identify the item being sold

View solution in original post

9 Comments 9
Highlighted
Level 1

What is the best method for entering drop ship orders?

P.S. This person's original order via our website has already been entered into QB's as a sales receipt. Now I just have to enter the drop ship order that I paid for via our company credit card (even though customer already paid).
Highlighted
Level 15

What is the best method for entering drop ship orders?

it works best if you use a non inventory item check marked to be used in both an assembly or resale, select COGS as the expense and your income account

sell that item

purchase it

then you can report on item sales too
Highlighted
Level 1

What is the best method for entering drop ship orders?

I'm still confused. I set up the item as a non-inventory part. But if I then do it as a "bill" there is nowhere to choose the item. And if I do it as a sales receipt I am choosing the customer (who already has a sales receipt entered for the order), rather than the supplier who drop shipped, and I paid them for the item.
Highlighted
Level 15

What is the best method for entering drop ship orders?

on a bill you use the item tab, select the non inventory item

sales and purchases are two different things. when you use that non inventory item set up like I explained,
a purchase posts the cost to the expense account on the item screen, COGS
a sale to a customer posts the sales price to the income account on the item screen
then on the P&L, income is reduced by expenses to get net profit

if you are importing sales, then the import should identify the item being sold

View solution in original post

Highlighted
Level 1

What is the best method for entering drop ship orders?

Thank you very much for your help! I entered it as a "bill" but used the "item" tab, and selected the "non-inventory" item and the customers name. Then I just paid it. Hope that was right! Seemed too easy!
Highlighted
Level 15

What is the best method for entering drop ship orders?

that is all there is to it
Highlighted
Level 1

What is the best method for entering drop ship orders?

Did QuickBooks create a purchase order to the vendor for the drop shipped item?

Highlighted
Moderator

What is the best method for entering drop ship orders?

Hello cathysilvis,

 

QuickBooks doesn't create a purchase order for a drop shipped item automatically. Unless, you automate a memorized purchase order.

 

You'll want to create the purchase order manually. With this, you'll be able to follow Rustler's suggestion in recording the drop shipped item.

 

You can also use this link to know how Accounts Payable works in QuickBooks Desktop: Accounts Payable workflows in QuickBooks Desktop.

 

I'd also recommend reaching out your accountant. They might have other ways of recording it that may suit your business setup.

Highlighted
Level 1

What is the best method for entering drop ship orders?

Hello

 

When we have imported the suppliers'invoice (in mass) and the supplier's PO (in mass as well, what is the best way to consiliate supplier invoice and supplier PO please ? We are wondering if QBO is able to suggest conciliation for supplier from the PO number, and if yes, where in the supplier invoice can we add the PO number (of the supplier) ? Our customer is doing dropshipping and the conciliation for the payables is a nightmare as the supplier'PO is not conciliating automattically with the supplier invoice (we have already seen the left menu suggesting PO for a supplier chosen, but it is not efficient with the quantity of supplier PO our customer have in dropshipping. We thougth the best practice is (for the supplier process) | #PO →  #delivery order (but no reception step with drop shipping )→  #invoice; we thought quickbook will be able to the tracability trough this process. What is your advise please ?

 

Thanks

Need to get in touch?

Contact us