Inter-Company Drop Ships – GoldFinch Clientcare

Applies toProcess Special Orders Drop Ship Orders

AudienceAll users

Last updatedSeptember 29, 2025

Processing an intercompany drop shipment between two GL Ledgers requires coordinated actions to ensure accurate financial and inventory records.

Scenario

The US Subsidiary requests the CA Subsidiary to send goods directly to the US end customers. The financial transactions need to be recorded appropriately in both ledgers.

Steps

In the US Ledger (Purchasing Entity):

follow the Process Drop Ships to:

Create a Drop Ship Sales Order: Customer on the SO = US Ledger’s end customer
Create a Drop Ship Purchase Order: Vendor on the PO = Inter-company Account setup for the CA Ledger

Accounting Entries in the US Ledger

Debit	Credit
Accounts Receivable Inventory	Revenue Inter-company Due-To/Due-From

In the CA Ledger (Supplying Entity):

Create an Intercompany Sales Order: Customer on the SO = Inter-company Account setup for the US Ledger.
Ship and Invoice the Sales Order.

Accounting Entries in the CA Ledger

Debit	Credit
Inter-company Due-To/Due-From COGS	Revenue Inventory

Article Inter-Company-Drop-Ships · Last updated September 29, 2025 · GoldFinch ERP Help Center