Consider a scenario where you are running AX 2012 and your Dynamics AX databases are hosted on a Clustered SQL Server instance. I’ll discuss some concepts and points of interest below which are relevant when running AX 2012 RTM, R2 or R3.

Drop Shipment (or Direct Delivery) is a supply chain model allowing companies to deliver goods directly from vendor to customer. This is a common methodology used in a variety of industries, including fulfillment and distribution as well as by many manufacturers. By using the following process in Microsoft Dynamics AX you can create an order that is sent directly to your customer from the product’s Vendor.

The first step is to create a sales order.

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– Accounts Receivable > Common > Sales Orders > All Sales Orders

Enter in all information on the sales order form like you would if you were directly delivering the item to the customer.

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After all the information is added to the Sales Order form, hit the Direct Delivery button.

– In the Sales order form, on the Action Pane, on the Sales order tab, click Direct delivery

This then launches the Direct Delivery form. This screen lists all the lines in the sales order form. Change the Vendor field to the vendor that will deliver the item to the customer. (Note: Vendor fields and pricing information can be setup on the released item as specific defaults)

Check the Include box on every item that is a direct delivery and hit the OK button.

This will lead to the creation of a purchase order associated with this sales order. Note, on the purchase order display list, the direct delivery checkbox will be checked.

All updates to the sales order line should now be done on the created Purchase order, except for invoicing. You will still be able to invoice the sales order and charge the customer manually.

When you look at the Purchase order line details, you will be able to see that the purchase line references back to the sales order.

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Confirm the Purchase order by selecting Purchase > Generate > Confirmation

Once you have received word that the customer has received the order, or received word that the vendor has shipped the order, you can then post the product receipt. This is done on the purchase order under the receive tab > Generate > Product Receipt

Enter the product receipt number and hit OK on the post product receipt form. Note that this will change the status of the Purchase order to Received and automatically change the status of the Sales Order to Delivered.

The last steps are to invoice the Purchase order when you are ready to pay the vendor and invoice the Sales Order when you are ready to charge the customer for the direct delivery.

Have other Microsoft Dynamics AX inquires or needs? Visit our Help Desk for AX page to see how our experts can help!

For more information please contact Ellipse Solutions at info@ellipsesolutions.com or by calling our corporate office at (937) 312-1547.

Good news, everyone – Microsoft Dynamics AX 2012 R3 CU13 is now available for download!

Cumulative Update 13 includes:

• Client enhancements
• Developer tools enhancements
• BI enhancements
• Financial enhancements
• Retail enhancements
• Human capital management enhancements
• Supply chain management enhancements
• Warehouse and transportation enhancements
• Public sector enhancements
• Country/region-specific updates that are included in CU 13

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For more specific information, check out the links below:

Dynamic Ax 2012

Interested in upgrading your Dynamics AX 2012 R3 Solution to CU13? Contact us today!