Setup required in Purchasing for Drop Shipment flow

[SRINIVASA,KILLAMSETTI]

Whats the setup required to be done in the Purchasing module for the
Drop Shipment flow. Clearly mention the setups in stepwise fashion

[krishna puti]

You don't require specific set ups in Purchasing Unless you need the PO to be created Automatically

Make sure following steps

Order management
1.Create sales order with type:Dropshipment (Make sure Order lines has source type:External)
Once order is booked.Run "workflow background " Process with source;Order Entry
Or Run Purchase release

Purchasing
3.Run Requisition Import
4.PR will be created after step3
5.Depending on the set up (whether automatic document creation =Yes or No)
PO will be created(Check the shipment Destination org;its the Customer address rather than Inventory org)