A direct ship order is a type of sales order where you can purchase a specific item based on the customer's requirement and ship the item directly from the supplier to the customer without affecting inventory operations.
You should set up the Processing Option for (P42101) in order to create the Direct Ship Sales Order.
When you create a Direct Ship order, the system creates the Sales Order and also the Purchase Order for the vendor at the same time. The Purchase Order instructs the supplier to ship the item directly to the customer. The system doesn't create the Purchase Order if you activated the Commit to Quantity 1 or Quantity 2 commitment in the processing option of the Sales Order Entry program. A Direct Ship quote can also be set up, in which case whenever you release the Sales Order from Direct Ship Quote, the system will automatically create the Purchase Order. When you set up the line type D—which has options to create the Purchase Order automatically—and set up the processing option of the Sales Order program with line type D during Sales Order Entry, the system creates a related Purchase Order. If the Order Hold is set up in the processing option of the Sales Order program and the system places the order on hold, then both the Sales and Purchase Order will be placed on hold. If you cancel the sales order detail line, the system cancels the related Purchase Order detail line automatically. Any change in the Sales Order will also reflect the Purchase Order. Similarly, if you change the Purchase Order, the system will automatically update the Sales Order.
You can set up the Direct Ship Sales Quotation in order to create the Direct Ship Sales order, which does not affect inventory operation.