**Drop shipping** is a supply chain management technique in which the retailer does not keep goods in stock. Instead they transfer customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer
In ERPNext, you can create a Drop Shipping by creating Purchase Order against Sales Order.
> Selling > Documents > Sales Order > Purchase Order
#### Setup on Item Master
Set **_Delivered by Supplier (Drop Ship)_** and **_Default Supplier_** in Item Master.
#### Setup on Sales Order
If Drop Shipping has set on Item master, it will automatically set **Supplier delivers to Customer** and **Supplier** on Salse Order Item.
You can setup Drop Shipping, on Sales Order Item. Under **Drop Ship** section, set **Supplier delivers to Customer** and select **Supplier** agaist which Purchase Order will get created.
#### Create Purchase Order
After submitting a Sales Order, create Puchase Order.
From Sales Order, all items, having **Supplier delivers to Customer** checked or **Supplier**(matching with supplier selected on For Supplier popup) mentioned, will get mapped onto Purchase Order.
It will automatically set Customer, Customer Address and Contact Person.
After submitting Purchase Order, to update delivery status, use **Mark as Delivered** button on Purchase Order. It will update delivery percetage and delivered quantity on Sales Order.
**_Close_**, is a new feature introduced on **Purchase Order** and **Sales Order**, to close or to mark fulfillment.
###Drop Shipping Print Format
You can notify, Suppliers by sending a email after submitting Purchase Order by attaching Drop Shipping print format.
