Drop shipment in AX 2012

Organizations always strive to minimize and gain on sales delivery time and on stock quantity levels, by reducing product maintenance and inventory carrying costs, and then growth the business.

Drop Shipping Model

One of the best drop shipping business model advantages, is there is no need to manage, stock and organize inventories, you just do not products in your warehouse before you ship them to the customer.

The whole process is when a customer orders a 150$ of XY product from you and your supplier charges you 12$, an invoice is sent to your supplier, they charge you 12$, and they ship the product to your customer, meanwhile you collect 150$ for a profit of 138$.

What about AX 2012

Drop shipping or (Direct deliveries) in AX, can be created via one the Following modules:

  • Sales and Marketing > Common > Sales Orders > All Sales Orders   OR
  • Accounts Receivable > Common > Sales Orders > All Sales Orders

Once on Sales Orders Form, we create a new SO and associated order lines. thenstart creating a new Direct delivery which will be automatically associated to the selected SO.

A new Direct delivery can be created now for my specific Sales Order. 

In this form we can specify the Sales Order lines that must be handled/included as a direct delivery, in parallel we can chose the associated vendor ID for each line.

  • In this example my SO have one Order line, a link now have been created between the sales order lines fro the direct delivery and the corresponding purchase order lines.


  • A new Purchase Order have been generated now, with « Drop shipp » as value on « Delivery type » base enum field on PurchLine table.
  • We can use « INTERCOMPANYPURCHSALESREFERENCE » table to pull all Purchase and Sales reference IDs.

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