# Drop-Ship Invoice Automation | InvoiceIQ by Analytos

> In a drop ship the vendor ships straight to your customer, so there is no warehouse receipt to release the vendor bill and no fulfilment to release the…

Canonical URL: https://invoiceiq.analytos.ai/ap/drop-ship-invoicing

Drop-ship invoicing

# Drop-ship invoice  
automation

When a vendor ships straight to your customer, one approval updates both the purchase and the sale.

[Book a walkthrough](https://invoiceiq.analytos.ai/contact)[InvoiceIQ AP by Analytos](https://invoiceiq.analytos.ai/ap)

The question: How can I automate drop-ship invoice workflows?

## The short answer

In a drop ship the vendor ships straight to your customer, so there is no warehouse receipt to release the vendor bill and no fulfilment to release the customer invoice. With InvoiceIQ AP and AR by Analytos together, the vendor’s invoice or shipment confirmation becomes the evidence for both: one approval writes the item receipt onto the purchase order and the item fulfilment onto the sales order.

## How it works

1.  Step 1
    
    Receive the vendor document
    
    The vendor invoice or shipment confirmation for a drop-shipped order.
    
2.  Step 2
    
    Cross-check
    
    The purchase order and the linked sales order are checked against each other before anything is written.
    
3.  Step 3
    
    Approve once
    
    One approval writes the receipt and the fulfilment, dated when the vendor shipped.
    
4.  Step 4
    
    Bill and invoice
    
    The vendor bill can post and the customer invoice can be raised the same day.
    

## Controls

-   Partial shipments are flagged; only what shipped is billed
-   The vendor’s price never reaches the customer invoice
-   All four ERP documents reverse together

## Is this a fit?

### A good fit when

-   You drop-ship regularly and both records stall today
-   You run both InvoiceIQ AP and AR

### Not the right tool when

-   You use only one of the two products (drop ship needs both)

## Evidence

-   CapabilityDrop-ship composition module, available when AP and AR are both deployed.

How we label claims: [evidence and claims policy](https://invoiceiq.analytos.ai/resources/evidence).

## Frequently asked  
questions

-   ### 
    
    Yes. A drop ship is a payable and a receivable on one shipment.
    
-   ### 
    
    The date the vendor actually shipped.
    

## Related questions

[InvoiceIQ AP by AnalytosAI Accounts Payable Automation](https://invoiceiq.analytos.ai/ap)[3-way invoice matchingHow do I automate invoice matching against the PO and the goods receipt?](https://invoiceiq.analytos.ai/ap/3-way-matching)[AP on top of your ERPHow can I automate AP without replacing my ERP?](https://invoiceiq.analytos.ai/ap/erp-integration)[Invoice from the shipment document](https://invoiceiq.analytos.ai/ar/invoice-from-shipment)

## See InvoiceIQ AP on your own documents

InvoiceIQ AP by Analytos: ai accounts payable automation. A walkthrough starts with your real supplier invoices, purchase orders and receipts.

[Book a walkthrough](https://invoiceiq.analytos.ai/contact)