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Author's profile photo Harihara Choudhury

Quality Inspection in drop shipment process

Introduction: In this post, I would elaborate about quality inspection process steps during Drop shipment process.

Main part:  In drop shipment process, Stock does not bring to plant premise. That deliver from supplier end to customer. So, in this case quality would inspect at supplier end.

Accordingly, goods receipt should not create inspection lot for post GR inspection at business premise.

Pre-requisites for this inspection process.

  • Material master having QM view with inspection type “01”.
  • Inspection Plan with usage 01 and release status.
  • Quality info record with active source inspection for material, Plant and Vendor combination. This master data has major role to create source inspection and to restrict creation of lot after Goods receipt.

Below steps need to follow for inspection process.

Quality info record (QI01)

  • Creation and release of purchase order for material, Plant and concern vendor combination.

  • Execute transaction QI07 with Material, Plant, Vendor and delivery date(Optional).

  • One inspection lot (. i.e. Source inspection lot) would create.


  • Now do Usage decision of above-mentioned inspection lot to evaluate inspection characteristics. There would not be stock tab in inspection lot of dropship process to move stock.

  • After usage decision of inspection lot, Goods receipt of purchase order would move stock to unrestricted vendor stock.


  • No inspection lot would generate during goods receipt.

Conclusion: This process helps to avoid inventory cost and additional transportation cost. Such scenario would face difficulty for inspection of product prior to delivery. Above mentioned steps would help to overcome that difficulty and complete required inspection of material.

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      Author's profile photo Vignesh Veerasamy
      Vignesh Veerasamy

      Useful document.

      Keep going

      Vignesh V

      Author's profile photo Ansar Iqbal
      Ansar Iqbal

      Great document thank you Harihara.
      Question is there anyway to charge vendor for the inspections? Maybe a way to book some standard cost for collections etc.?

      Author's profile photo Faisal Khan
      Faisal Khan

      Hi Harihara Choudhury

      Very useful document.

      I have a query that how to link the PO created with the Inspection Lot for tracking and reporting purposes?

      Also I have put up a question on same with additional details on SCN too.

      Awaiting for your reply