Depends on the goods, the logistics and your business partners, certain items are shipped directly to the customer without passing through your warehouse first. This can be a convenient arrangement, however these items are part of inventory and require the appropriate documentation. For such processes, SAP Business One enables you to define a virtual warehouse:
Drop-ship warehouse can also be used for managing serial and batch numbers – just select the “Manage Serial Numbers and Batches”. When creating documents for items in drop-ship warehouse, no inventory transactions are created for those items. Note that after a document involving drop-ship warehouse is posted, you cannot reverse this setting.
Available in SAP Business One, version for SAP HANA and SAP Business One. This tip and all the other tips are available on the Tip of the week community page. You can also visit the Implementation Arena for useful implementation tips.