Technically you own the items you purchased from the vendor/supplier but the timing of ownership between purchasing and shipping it to the client becomes negligible because it's right away shipped to your customer. Some business industries still do recognize inventory asset in their GL during posting but simply reverse it out once the item has been shipped to by the vendor to your customer which is also the time they record the vendor bill/invoice. If you want to do this type of process, one way of doing it in NetSuite is to use Special Order (This is just a workaround through cause in the system you would still need to receive the item before you can record the fulfillment - It doesnt really fit the definition of dropship but it achieves what you are looking for)

Yes yes we still want to recognize the inventory since in some cases there's a significant lag. It matters to us especially at year-end (and month-end). We believe that the inventory must be recognized especially when it was not yet shipped to the customer but is already ready for delivery. With this, there is impact in BS and IS and our financial ratios. So there is basis to recognize inventory at all time in drop ship transactions?

Well I'm totally with you cause technically you still own the inventory unless there is confirmation that the goods have been received by your customer. Even in transit it would still be your ownership.

Thanks a lot! It's a relief that we're not the only one who want to do this. Lol. It's just a bit frustrating that NS skipped that process though (although maybe for others it's negligible).

yeah i get your point cause in a strict accounting sense you really own the inventory at some point and if there is lag in the shipping then it's just right to recognize which is why some companies using netsuite have raised.

Yup and maybe it was my fault because I was not clear enough when I asked here that we are concerned about the accounting side and not just on the business process itself

yeah sometimes there are processes in NetSuite that are not conducive to how business industries operate and record the accounting part