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We have some items drop shipped to our customers from our vendor. How can we keep track of items that are listed as non inventory and sold? Put them as inventory items?

I am using QB 2015 Pro.  I would like to set up inventory that we keep on hand for sale and also inventory that gets drop shipped to my customers.  I understand from reading other posts that drop shipped items should never be in the inventory as we never physically have them on hand.  Therefore, is there a way QB can let me know how many of a certain item have been sold since they were drop shipped?  Right now I order from my vendor online, pay by cc and drop ship to the customer and invoice.  I do not create a purchase order for the items.  Therefore it is difficult to understand how much I am purchasing of each item.  Some invoices can contain both items delivered by me and drop shipped to the customer.  What is the best way to enter these items in QB?  Say I have item #PT501 that I have in my inventory quantity of 3 but the customer wants 6 of them.  So I deliver what I have in stock and drop ship the additional 3.  3 came out of inventory and 3 were drop shipped.  Invoice them for 6.  Should I create two items in QB?  One in inventory parts of PT501 and one in non inventory parts of PT501DS (for drop shipped?)  What's the best way to keep track of what has been sold and how many?  

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Best answer 12-10-2018

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Established Community Backer ***

An item that is dropshipped is a Two Sided Noninventory i...

An item that is dropshipped is a Two Sided Noninventory item per my attached screenshot.

It might be something you Also Stock, but this is not an Inventory activity and is not something you stocked and then sold.

You don't need to use a PO unless tracking an order you placed is what matters to you.

The order details, and/or the Purchase of the Specific Noninventory item to dropship can be Customer Tracked and marked as Billable on the purchase, or just tracked. You still use Qty for Noninventory items.

That means, for your example, you sell 3 Inventory and 3 noninventory items.

You don't want these as inventory as it will make a mess of your financial reporting; you have to never sell on a date before you purchase, etc.

5 Comments
Established Community Backer ***

An item that is dropshipped is a Two Sided Noninventory i...

An item that is dropshipped is a Two Sided Noninventory item per my attached screenshot.

It might be something you Also Stock, but this is not an Inventory activity and is not something you stocked and then sold.

You don't need to use a PO unless tracking an order you placed is what matters to you.

The order details, and/or the Purchase of the Specific Noninventory item to dropship can be Customer Tracked and marked as Billable on the purchase, or just tracked. You still use Qty for Noninventory items.

That means, for your example, you sell 3 Inventory and 3 noninventory items.

You don't want these as inventory as it will make a mess of your financial reporting; you have to never sell on a date before you purchase, etc.

Not applicable

Here's the way I would handle it.  An item that is both i...

Here's the way I would handle it.  An item that is both in inventory and also drop shipped should be set up as an inventory item.  When you buy the item on a CC for drop shipment, enter the CC charge for the item and immediately invoice the item to the customer.  if the vendor ships 3 and you ship 3, personally i would create 2 invoices, but if you created one invoice, the item would show that it entered inventory and was sold the same day.

Established Member

Re: Here's the way I would handle it. An item that is both i...

Just a thought, if you have access to advanced inventory, you can set up an inventory site as 'drop-ship'. This would allow you to choose this site for shipping to the customer (on the invoice) as well as receiving on the vendor order.

Established Community Backer ***

Re: Here's the way I would handle it. An item that is both i...

The point of DropShip = you don't get it into stock and then sell it from stock. There is no Warehouse location, because there is no material. There is no inventory item, because it isn't in the warehouse. It isn't even in your possession and won't be in your possession.

 

All of the QB programs that provide for Inventory product items, also provide you with the Noninventory Item type, for use with DropShip operations. That's why they are called Non-inventory.

 

You want to avoid the inventory functions of Average or LIFO/FIFO costing to COGs for dropship operations. You don't have this asset. That's why you need to have the supplier DropShip for you.

Established Member

Re: An item that is dropshipped is a Two Sided Noninventory i...

Good morning!

I think I have a similar problem and would like to see your screenshot? I am a brand owner and I order every day for fulfillment from my copacker. For orders for sales I use an invoice and send it to my copacker to see what to send and include the invoice in the shipment for the customer. But for orders for samples that are a marketing expense i would like to send a PO to the copacker. QB is not allowing me to use my same Product SKU's on a purchase order.  Do I have to create a whole new set of products for that? That will throw all my reporting off.  I want to be able to send a purchase order for the same items I sell. I did check that I do sell this item but it didn't help.

Thank you!