When we initially enter a sales order that includes a kit with a drop ship member item, NetSuite automatically generates a special order purchase order for the member item. Drop ship inventory items are treated as special order items when they are sold as part of a kit.
If we change an existing order to add a kit with a drop ship member item, NetSuite does not automatically generate a purchase order. If we change an existing order to add a non-kit drop ship item, we can generate a purchase order for the drop ship item.
Characteristics of Drop Shipping Kit Members:
1.Sales revenue is tracked in NetSuite
2.P.O. is linked to the sales order
3.Vendor ships to Company’s address not to Customer’s address
3. Inventory impact: Impacts Asset and Cost of Goods Sold (COGS) accounts upon receipt and fulfillment
4. Item commitment :A special order item always commits upon receipt of the linked PO—it is not committed from stock on hand.
5. It Can be used for inventory items and non-inventory for resale items.
6. Item Fulfillment: Can be fulfilled only after the linked purchase order has been received.