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Drop shipments are a great feature within Microsoft Dynamics 365 Business Central. You can put in an order with a supplier, have it shipped to the customer and track it all within one centralized system. But what happens when you need to undo a drop shipment in Business Central?
Because drop shipments on Sales Orders are linked to a Purchase Order, they can’t be undone in the same way that traditional Sales Shipments are. When we try to use the Undo Shipment function on a Posted Sales Shipment, we get the following error message:
“Drop Shipment must be equal to ‘No’ in Sales Shipment Line: Document No.=S-SHPT102233, Line No.=10000. Current value is ‘Yes’.”
So how do we undo a drop shipment in Dynamics 365 Business Central?
Depending on where you are in the process, you can use one of two methods to reverse the drop shipment.
In Method 1, we will reverse the drop shipment by creating negative quantity SO/PO lines to cancel out the original shipment. This can only be done when the order is shipped but not yet invoiced.
In Method 2, we will reverse out the drop shipment by creating a Sales Return Order and Purchase Return Order. This process is used to reverse out drop shipments which have already been invoiced.
Method 1: Create negative quantity lines to reverse shipped/received items
- Navigate to your Sales Order and Re-open your order if it’s Released. Add negative quantity sales lines to mirror the original sales lines.
- Navigate to your Purchase Order and Re-open your order if it’s Released. Pull the negative lines into the Purchase Order by going to Actions > Functions > Drop Shipment > Get Sales Order.
- Select your Sales Order and click “OK.”
- The negative Drop Ship Lines will be pulled into the Purchase Order Lines. Update the lines as needed.
- Post your Purchase Order using the Receive option.
- Once the posting has been completed, the Item Ledger Entries should reflect that the item has been unshipped and unreceived.
Method 2: Create a Sales Return Order/Purchase Return Order to reverse Invoiced Drop Shipments in Business Central
First, Create a Sales Return Order:
- From your global search, type in Sales Return Orders and click on the corresponding link.
- From the Sales Return Order list, click on “New.”
- Select a Customer and then click on Prepare > Copy Document.
- Select a Document Type of Posted Invoice and enter your Posted Sales Invoice number in the Document No. field. Then click “OK.”
- The Sales Invoice will be copied into the Sales Return Order. Review your header and line information and post the Sales Return Order using the Receive and Invoice option.
Once the posting has been completed, the G/L Entries and Item Ledger Entries should reflect that the item has been unshipped.
Next, Create a Purchase Return Order:
- From your global search, type in Purchase Return Orders and click on the corresponding link.
- From the Purchase Return Order list, click on “New.”
- Select a Vendor and then click on Prepare > Copy Document.
- Select a Document Type of Posted Invoice and enter your Posted Purchase Invoice number in the Document No. field. Then click “OK.”
- The Purchase Invoice will be copied into the Purchase Return Order. Review your header and line information and post the Purchase Return Order using the Ship and Invoice option.
- Once the posting has been completed, the G/L Entries and the Item Ledger Entries should reflect that the item has been unreceived.
Follow our blog for additional tips and tricks on working within Dynamics 365 Business Central for manufacturing and distribution.
