If you use (or are thinking about using) the drop ship feature in Microsoft Dynamics GP, you need to know about Professional Services Tools Library's (PSTL) functionality Shipment Notification.
Shipment Notification is used in conjunction with Sales Order Processing and allows for drop ship sales orders to be transferred to an invoice before enter/match is complete on the purchase order for the drop ship sale. No more delaying sales invoices while waiting for lagging vendors!
With standard drop ship, the COGS amount for the Sales invoice is based upon the enter/match invoice. If you use Shipment Notification, that process may change. If you invoice the sale prior to matching the PO, the sales line item will pull the item cost from the Item record (depending on valuation method used) not from the specific cost that the vendor charged you on the Purchase Order. This will affect your COGS, profit margins, etc. (particularly if the vendor prices fluctuate noticeably) so it is important to consider the potential impact before implementing.
A few other tidbits to know regarding the functionality....
If you already have PSTL installed and are panicking because you don't see Shipment Notification, don't. There's a separate installation for this tool so you may need the assistance of your system administrator.
Once installed, security for that component will need to be created (Microsoft Dynamics GP menu >> Tools >> Setup >> System >> Security Tasks/Security Roles) and assigned (Microsoft Dynamics GP menu >> Tools >> Setup >> System >> User Security).
For more information on Shipment Notification, PSTL, or other ways to better utilize GP, contact us at Info@LagomLLC.org.