The Ship Date field under the Shipping tab of the sales order defaults to the following day of the sales order’s transaction date

The Time Format set under Setup > Company > General Preferences > Time Format is the 24 hour time format or hh:mm (24 hours) instead of the 12 hour time format or hh:mm AM/PM. To correct this you have two options:

 

A. Convert the time set under Setup > Accounting > Shipping > Set Up Shipping page: Cutoff Time for Shipments from 5:00 pm to 18:00.  Hit Submit button

 

B. Change the settings made under Setup > Company > General Preferences > Time Format from hh:mm (24 hours) to hh:mm AM/PM. Hit Save button

 

Note: If you do not want users other than Administrators to override the Time Format preference, you need to unmark the box under the Allow Override column for the Time Format field under Setup > Company > General Preferences > Overriding Preferences tab: Time Format field.