The problem that I am facing is that items that are drop shipped do not make it into the Cost of Goods sold account, which completely messes up our P&L reports.
I’ve been testing erpnext out for several weeks, since we are anticipating switching over to it at the beginning of next year, but the problem that I discovered today may have put the breaks on that goal indefinitely. I’m hoping that maybe I am just doing something incorrectly, but as it is right now, I simply cannot see what it is that I could be doing wrong.
Here is the current workflow I am using.
1: I, or a member of the sales team creates a Sales Order for the customer.
2: All items that are being drop shipped are marked as so, and are assigned to a Supplier.
3: Sales Order is submitted and then we click the “Purchase Order” button to create the PO.
4: Purchase Order is created, undergoes any needed modifications, and is then submitted and sent to the supplier.
5: Once we receive delivery confirmation from the supplier, we then click the “Mark as Delivered” button within the Purchase Order.
6: From here, we go back to the Sales Order and click “Invoice.”
Using the above workflow, the purchased items do no show up under Cost of Goods Sold, and in return, when a P&L report is generated, it shows that we are are well above what we actually are.
For example, let’s say we have a customer that orders $100 worth of merchandise. Our cost is $50. If we drop ship their items to them using the above method, and then ran a P&L report, it would show that we had a Net Profit of $100 as opposed to $50.
I sincerely hope that I am simply doing something wrong, and someone can tell me what needs to change in my workflow. Otherwise, if this is indeed not how the software is supposed to work, then I would hope that a fix will be rolled out quickly.
