Drop Shipment

Drop Shipment

Drop Shipment is a value on the Shipment Type field, available on Sales Orders, Transfer Orders, Service Orders, and Warehouse Shipments. You will find this field next to the Shipment Method Code field on the document. If the field is not immediately visible, it may be hidden under Show more.

When to use Drop Shipment

Use Drop Shipment when your customer is reselling goods to their own customer, and the item ships directly from your warehouse to your customer’s end customer:

• Your company sells an item to your customer (the Sell-to party)
• The item ships directly from your warehouse to your customer’s customer (the Ship-to receiver)
• The carrier label should show your customer’s (Sell-to) address as the sender — so the shipment appears to originate from your customer, not from your warehouse
• The pick-up address remains your warehouse — only the sender name and address on the label changes

What happens when Drop Shipment is set

When the Shipment Type field is set to Drop Shipment on a document, the system replaces the sender (Ship-from) address on the waybill with the Sell-to address from the Sales Order — that is, the customer’s own address.

• The sender address on the waybill is replaced by the customer’s (Sell-to) address
• The receiver address (Ship-to) is not changed — it still points to the delivery destination as normal
• The shipment is still processed and a carrier label is still generated — the document is not skipped

Tip

Normally, the sender address is determined by your Shipment Settings (Company Address, Shipping Address, Custom Address, or Location Address). When Drop Shipment is set, this logic is bypassed entirely and the Sell-to address from the order is used as the sender instead.

What is not affected

• The receiver (Ship-to) address remains unchanged
• The shipment is processed normally — a carrier label is generated and sent to the carrier
• All other waybill fields (measurements, package types, services, etc.) are unaffected