Dropshipping on Amazon & eBay | Brightpearl Video Lecture | Using Brightpearl:Sales Order Processing - E-Commerce

hi so this video is all about drop
shipping and drop shipping is where you
send a purchase order to your supplier
and then your supplier sends goods
directly to your customer so the goods
don't go through your own warehouse and
you can either drop ship for every
product or you can drop ship when you've
not got stock of a product that you
normally would have so setting up / drop
shipping involves four steps adding your
suppliers giving your products a price
on the cost price list linking your
products to suppliers and then
activating partial or advanced
fulfillment so let's have a look at the
first step adding your suppliers in my
bright pal account have created a
supplier called dropship supplier and in
the financial tab of made sure that
they're on the cost price list I've also
created an extra account code or nominal
code for drop ship goods and this helps
me differentiate the cost of these
versus the cost of sales shipped direct
from my own warehouse and these two of
the main fields that you want to get
right when creating your dropship
suppliers otherwise that are exactly the
same is a standard supplier next you
want to make sure that your products
have got a price on the cost price list
and this is the price list that you
assigned to your supplier you can do
this either one by one or by exile
import in my Brightpearl account we can
see that the price on the cost price
list for this particular product the
kayak spray deck is set to $15 because
we're going to be shipping from a
dropship supplier it doesn't matter what
the purchases account code is here
because we've set the account code on
the supplier the next thing you need to
do is link your products to your
suppliers you can either do this one by
one using the batch process on the
product list or by excel import so going
into my bright pal account I've got a
vendor's tab here which would say
suppliers if you're in the UK where you
can choose your suppliers and you can
have one or more suppliers there's no
concept of preferred supplier I can also
assign suppliers to products using the
product list so let's search for some
products and here we're just going to
work with the kayak sprayed
back I can select all the product so I
want set supplier and then choose the
supply from here I can either replace
the existing suppliers or leave the
existing suppliers connected to the
product and the fourth and final thing
you need to do is activate partial or
advanced fulfillment and this is done it
settings products and infantry inventory
settings in our Brightpearl account we
can see this here split or partial
fulfillment and dropship purchase orders
so make sure you turn that on now what
I'll do is I'll show you how to drop
ship a sales order so here we've got a
sales order from Jimmy he's ordered five
of these sprayed X but I can see that
I've not got any in stock and also none
on hand which means that I'm going to
have to drop ship direct from the
supplier because he desperately wants
these sprayed X because I turned on
advanced fulfillment I've got a third
option under the fulfil link so let's
click that for partial or advanced
fulfillment where if I had any stock it
would show on the right hand side
however I don't have any stock and I can
see here the supplies that I've
connected to this particular product and
if you remember we put fifteen dollars
on the cost price list which is why it's
costing fifteen dollars to send from the
dropship supplier let's choose a
shipping method and then update the
sales order to in progress and click to
create purchase orders that creates a
dropship purchase order which we can see
here let's go back to the sales order
which we can now see is in progress and
it's also all fulfilled we can see this
line has been fulfilled by purchase
order 100,000 35 the orders not yet been
shipped however and what I need to do
there is go into the dropship purchase
order and Mark that is shipped first
thing we'd do though is probably send it
off to the supplier so let's hit email
print choose to email select an email
address and send that marks the purchase
order is placed with supplier the
original sales order has not yet been
updated I could go back to it if i won
by clicking this parent order link and
then the final step to mark that sales
order as all shipped is to receive the
invoice against the purchase order in an
ideal world would have a button here
markers shipped on the purchase order
but we don't have that so what we do is
we receive the invoice which will mark
the sale has shipped so let's go back to
that sale 100,000 33 but we can now see
from the fully colored truck icon that
it's all shipped then what I do is that
invoice the sales order and that creates
all the accounting entries we need and
also marks the sale is completed now
let's have a look and see what's going
on in the accounting side of things when
we're drop shipping sales orders we're
not receiving inventory so there's no
asset value to change there's no change
to your balance sheet because we're not
shipping goods out notes there's no cost
of sale transaction so a standard sale
ship from your own warehouse would
create a cost of sale transaction when
you ship the goods out note a dropship
purchase order uses a 5,000 code which
means it goes straight to the profit and
loss a standard purchase order would
have asset and when you receive the
goods it would increase your balance
sheet which is typically a 1000 code on
a dropship purchase order the cost of
sale is recorded when the dropship
purchase order is invoiced at the end of
the process and that's the point of
which you know the final cost of the
goods the sales revenue is recorded when
the sale is invoiced in exactly the same
way as if you are sending the sales
order from your own warehouse so for the
sale we just drop shipped in the first
half of this video this is the income
statement or the profit and loss report
we can see that we've got merchandise
sales which is the sales revenue from
the original sales order and then we've
got cost of goods sold drop shipped
goods and this is coming through as a
separate line from your regular cost of
sales because I assigned the 5005 code
to the dropship supplier if I drill down
on this 75 we can see the order ID and
that's the dropship purchase order ID
where the line here has been set to five
thousand and five because the nominal
code or the account code on the dropship
supplier is also 5005 on the general
ledger we can see the two transactions
that have been created today we've got
the sales invoice from the original
sales order and then the purchase
invoice from the dropship supplier so
very straightforward and doing all of
your accounting automatically for you so
that's how to drop ship goods directly
from your supplier to your customer