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Virtual warehouse/inventory question

  • January 16, 2025
  • 5 replies
  • 89 views

Hello we have a bit of a unique scenario. We primarily dropship all our orders. Due to inventory restraints at times one of our vendors allows us to purchase inventory ahead and store as “virtual” inventory till we need it. 

We then submit a PO to this vendor for shipping and they return a 0.00 AP Bill (since we already own the product) for the items + freight charges and any serial numbers that may apply to the product shipped.

We would like to be able to monitor our inventory at the vendor for proper financial reporting, but would also like to be able to process the order as a drop ship PO instead of a shipment from one of our warehouses as we also drop ship other items from this vendor in the normal drop ship fashion and depending on the combination of items the PO would need to be shipped from the vendor’s stock instead of our “virtual” stock switching SO lines between Drop Ship and Shipping from our warehouse will be difficult.

Has anyone done anything similar to this?

5 replies

nhatnghetinh
Captain II
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  • Captain II
  • 532 replies
  • January 17, 2025

Hi ​@thinkinkllc 

As you said "We would like to be able to monitor our inventory at the vendor for proper financial reporting ..."
So I think you should create a Dropship Warehouse (Virtual warehouse) and Locations corresponding to each Dropship supplier. Perform the PO process as usual for Dropship orders > Select Dropship Warehouse, Dropship Location for this PO.

And when making Sales Order, you also select Dropship Warehouse.

 

Best Regards,

NNT


Dana Moffat
Acumatica Moderator
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  • Acumatica Moderator
  • 616 replies
  • January 20, 2025

From what i read, the inventory at the vendor should be valued as an asset recorded to the inventory control account - it’s owned inventory that belongs to you.  This scenario is akin to using a 3PL, that will fulfill your orders.  Many customers have setup the 3PL as a warehouse in Acumatica.  Suggest connecting with your VAR to explore this scenario further.

I don’t think setting this up as a Drop Ship will work, since you have ownership of this inventory and need visibility to valuation and on hand levels.


rfairchild58
Jr Varsity III
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  • Jr Varsity III
  • 32 replies
  • January 20, 2025

I agree with ​@Dana Moffat.  


  • Author
  • Freshman I
  • 1 reply
  • January 21, 2025

Thanks for the input. I was afraid this would the answer. Since we drop ship 98% of our orders it would greatly simplify the way we process Sales Orders if we could also handle these as a drop ship purchase order as well, since these same items will also at times drop ship from other vendors.


mclarke88
Jr Varsity III
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  • Jr Varsity III
  • 34 replies
  • January 21, 2025

Hi!

 

We recently dealt with a similar issue and built a reason code to re-accept the inventory into an internal warehouse after the drop ship. I wonder if this would help? check out the attachment. 


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