Overshipment issue in Drop Ship scenario
We have a real life scenario where a item which is liquid has 5% receiving tolerance and 25% over receipt tolerance. Overshipment Tolerance also is 5% on OM TAB of item master. Profile 'OM: Over Shipment Tolerance' is also at 5 at site level.
Drop ship is used due to the fact the liquid chemical is not stored in warehouse but in tanks at customer sites. This means that when this item is ordered using drop ship process the customer can receive within the tolerance range. e.g. if 1000 gallons is ordered then the supplier will pour anywhere between 950 and 1050 gallons depending on the space available.