Drop Ship
Setup
It is possible to ‘Drop Ship’ Sales Order Items.
Modify the line item and specify both “Back to Back PO” and “Drop Ship”.
Be sure that there is at least one Supplier set up against the Product, either from the Products module or the Suppliers record in the Accounts module.
When Firming the Order, the Supplier Product with the lowest Sequence will be selected and a ‘Drop Ship’ Purchase Order generated, with a shipping address straight to the customer.
There are Settings available in Purchase Order > Manage to specify the behaviour of whether the Orders are generated as Firm, and if future Drop Ship items can be added to existing Purchase Orders (that are still in Draft status, from the same supplier, and being sent to the same address).
Delivery
Because the shipping is out of your control, you do not need to raise a Shipment in the standard way.
Instead, when you have been made aware that the item has been delivered to the customer, you can mark the Purchase Order Items (or the Order as a whole) as ‘Delivered’, which will automatically generate the Goods Receipt and Shipment records, and update the Sales Order Items accordingly.