Dropship From Supplier - What is the basic flow?

Hello,
I am having some trouble trying to model the following business process:

  1. Customer purchases Item from me($100), while I have zero stock.
  2. I then purchase from Supplier
  3. Supplier ships goods direct to my Customer.
  4. Supplier Invoices me for COGS. ($80)

An additional constraint:

  • I need to record available stock levels @ Supplier Warehouse, without the stock appearing as an asset for my company.

I’m wondering how this is best executed in ERPNext?

Thanks!

Hello,

Please check my inline replies below.

  1. Customer purchases Item from me($100), while I have zero stock.

Create Sales Order at your end, with item price as $100.

  1. I then purchase from Supplier.

Covert Sales Order into Material Request, and then finally into Purchase Order.

  1. Supplier ships goods direct to my Customer.

In the Purchase Order, you should update delivery status. Perhaps you can insert a custom field, and based on update from your supplier, update status in the Sales Order or Purchase Order.

  1. Supplier Invoices me for COGS. ($80)

Against Purchase Order, create Purchase Invoice of $80 for the Supplier.

An additional constraint:

I need to record available stock levels @ Supplier Warehouse, without the stock appearing as an asset for my company.

You can add another Company in your ERPNext account for your supplier. But to get real-time stock update in supplier’s warehouse, supplier must use Stock module of ERPNext, and ensure all stock movement, sales and purchase is punched into ERPNext as well.

I’m wondering how this is best executed in ERPNext?

We are planning to incorporate drop-shipping sales system in ERPNext. Check following link to learn more. To raise its priority, you can also consider sponsoring it as per Paid Feature Development plan.

Github Issue: https://github.com/frappe/erpnext/issues/4089

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