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RE: Dropship Warehouse

Former Member
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Hi,

Can some one give me inputs on dropship warehouse will be helpful in which business senarios

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OK, now let's talk accounting....

Normally, when material is received into inventory from a vendor, SAP posts a debit to Inventory and a credit to "Accounts payable Holding" or some other such holding account. When the invoice and all inventory receiving documents are given to accounting, accounting creates the AP invoice and SAP posts a debit to "AP holding" thus erasing the holding value, and then posts a credit to the liability Accounts Payable, awaiting the payment. The net result is an increase in inventory and a decrease in cash when it is paid.

Now, please explain to me how the Drop Shipment directly from our book vendor to our customer will do this? I need to post a debit to "AP Holding" when I pay the invoice since there is no expense until a inventory item is sold, but if our Warehouse Manager did not receive the books into inventory, then there is no "AP Holding" credit in SAP to erase.

Thanks.