How To: Create a Drop Ship Stock Item

Table Of Contents

Introduction

A Drop-Ship Item is a stock item that is supplied directly to the customer by your supplier, rather than being picked and despatched from your own stock.

When a drop-ship item is added to a sales order, Khaos Control will not allocate stock to the order, even if stock is available. Instead, the item will be treated as a drop-ship line and handled according to its stock control settings.

Important: Drop-ship items will appear on backorder lists because stock is not automatically assigned to them.

Create a Drop-Ship Stock Item

Open a Stock screen.
Create a new stock item or load an existing stock item.
For guidance on creating a new item, see How To: Create a New Stock Item.
Ensure all required buy and sell prices have been entered.
Open the [ Stock | Detail | Options ] tab.
Tick the Drop-ship Item option.
Review the stock control options described below to determine how the item should behave.
Press Ctrl+S or click Save.

Understanding Stock Control and Drop-Ship Items

Drop-ship items behave differently depending on whether they are stock controlled.

Stock Controlled Drop-Ship Items

When a stock controlled drop-ship item is added to a sales order:

The sales order is placed into Awaiting Stock.
The invoice value remains £0.00 until stock is booked in.
The order waits for stock to be received, even if the stock movement is virtual.
This is often used where a supplier confirms despatch and stock is then booked into Khaos Control to complete the process.
Once stock has been booked in, the sales order can continue through the normal processing stages and the invoice will show the correct value.

Non-Stock Controlled Drop-Ship Items

When a non-stock controlled drop-ship item is added to a sales order:

The sales order is placed directly into Released.
The correct selling price is shown on the invoice immediately.
The order can continue through processing without waiting for stock.
No stock is allocated to the order.

This option is commonly used where stock levels are not managed within Khaos Control for the drop-shipped product.

Additional Information

Deferred Cost of Sales

Drop-ship items are included in the Deferred Cost of Sales report regardless of whether they are:

Stock controlled, or
Non-stock controlled.

When to Use Drop-Ship Items

Drop-ship items are often used for:

Supplier-direct deliveries.
Special-order products.
Large or bulky items not held in stock.
Products supplied from third-party warehouses.

Using the Drop-Ship option allows you to process these products correctly while maintaining accurate order processing and accounting records.