The table below explains the differences between special order and drop ship items:
| Function | Drop Shipment | Special Order |
|---|---|---|
| Sales revenue tracked in NetSuite | YES | YES |
| Purchase order form | Drop Ship PO form | Preferred PO form |
| P.O. links to sale | YES | YES |
| Vendor ships to | your customer’s address | your company’s address |
| Inventory impact | None—when it is not received into inventory | Impacts Asset and Cost of Goods Sold (COGS) accounts upon receipt and fulfillment |
| Item commitment | Drop shipments do not commit. | A special order item always commits upon receipt of the linked PO—it is not committed from stock on hand. |
| Can be used for inventory items and non-inventory for resale items | YES | YES |
| Item record can default to this method | YES | YES |
| Item Fulfillment | Can be marked as fulfilled before or after the linked purchase order has been received. | Can be fulfilled only after the linked purchase order has been received. |