Creating Drop Ship and Zero Cost Warehouses in EAutomate

eAutomate lets you create specialized warehouses to account for different business practices, how you would like inventory to flow and what affects your general ledger entries.

This post goes over how to setup Drop-Ship warehouses, Zero Cost warehouses, how to direct items to pull from these warehouses and some examples of how you might use these types of warehouses.

To create the warehouse:

1. In eAutomate, go to the Inventory menu and click on Warehouses. Click on New to create a new warehouse:


2. When initially creating the warehouse, you must set the Warehouse name, Description, Type, and Branch (if using branching):


Warehouse type options: Company site, Customer site, Drop-ship, Fixed asset, Other, RTV returns, Sales rep, Technician

  • Dropship warehouses work if the supplier is integrated with ECI's PO Processor and PO Receiver, then the entire process from PO to Receipt to Sales Order ready to bill is automated. Drop Ship warehouses do still carry the cost of the items through your inventory and COGS. Use this type of warehouse for transactions that are you are ordering and shipping directly to your customer.
  • To set up a Zero Cost warehouse, you can use whichever type best describes the warehouse. You'll set the costing type for the warehouse in the next step.

3. Click OK to create the warehouse and then edit the new warehouse to add the default bin settings and set the costing type, these are on the advanced tab:


Costing types: Allow you to specify how the inventory in each warehouse is treated on the general ledger.

Normal - All of the cost for non-serialized items is grouped into a single costing pool, sharing average cost for items on hand. Items in warehouses set with the normal costing type will affect the general ledger based on the calculated average cost of the item.

Special - Special costing type warehouses are used when you have a set of items you would like to have a specific average cost calculated that is excluded from the company's average cost. For these warehouses you would set the costing type to Special and check the box to Exclude from company average cost calculations.

Zero - Items in zero cost warehouses will show zero cost and will not have any effect on the general ledger. This costing type warehouse has the option to exclude the items contained in the warehouse from the company average cost calculations.

**You are only able to change the costing type of the warehouse when there are no items currently in the warehouse. Once items are in the warehouse, the costing type dropdown will be greyed out and you will not be able to change it.

Bin Settings: eAutomate uses the default bin settings to determine what bin to pull an item from for the specified transaction. eAutomate will first look to the item record for which bin to use for the specified transaction, and if there is no setting there, will then look to the default bin settings on the warehouse.

For each transaction type, select the bin that eAutomate should use. These settings will be used for any item set to pull from this warehouse that does not have a bin default set on the item record.

Click OK to finish creating the warehouse.

To set the bin defaults on the item record:

For each item record that you want to default to a specific warehouse/bin by transaction type, you set that on the Bin defaults tab of the item record.

Find the specific item record and edit the item:


Click on the Bin defaults (1) tab, then click on the Add (2) button to add an item bin default. Select the warehouse and bin to use from the dropdown menus (3) and then set the specific transaction type to use (4). You can set a different bin for each type of transaction listed, or click on the option to Set all transaction types to the warehouse and bin specified above.

When an item is used on a sales order fulfillment, eAutomate will first look to the item record for the default bin settings and if there is none set, will then look to the bin settings on the warehouse record associated with the sales order.

Set the Warehouse to use for the item:

Additionally, on the item record, you can set the specified warehouse and set the stocking code to drop-ship.

Click on the Warehouses tab of the item (1):


Choose the warehouse from the drop-down menu (2) and then set the stocking code to Drop-ship (3)

Uses for Zero Cost Warehouses:

ITT Equipment Orders

If you bill a dealer for install or receive compensation from a manufacturer, using a zero-cost warehouse for the equipment will keep those equipment records from affecting your general ledger:

  1. Manually build the equipment and bring it into inventory through an inventory adjustment. An inventory adjustment into a zero cost warehouse will automatically show as $0.00 for the transaction. You could also use a $0.00 purchase order in this step, but that does open up a bit of room for error as you'd have to make sure to remember to change the price on the PO to $0.00.
  2. Add the equipment to a sales order to process through from order to fulfillment.
  3. Using the zero cost warehouse ensures that there are no general ledger entries and the average cost of items will not be affected.






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