When an Item is received from a Return Authorization off a Sales Order and is restocked, the COGS is pulled from the fulfillment on the Sales Order. However, when the Sales Order was Drop Shipped, the COGS is on a vendor bill and does not carry over to the Receipt on the Return Authorization. How can we fix this?

AI generated answer (using internal Slack threads):

The issue you're facing is related to the way NetSuite handles Cost of Goods Sold (COGS) for drop-shipped items. When an item is drop-shipped, the COGS is associated with the vendor bill, not the sales order fulfillment. This is because the item never physically passes through your inventory, so the cost is directly associated with the vendor bill. When a return authorization is created for a drop-shipped item, the system doesn't have a COGS on the sales order fulfillment to pull from, so it doesn't carry over to the receipt on the return authorization. To fix this, you can manually adjust the COGS for the returned item. Here's how you can do it: 1. Create a new Inventory Adjustment for the returned item. 2. In the adjustment, debit the COGS account and credit the Inventory Asset account. This will increase your inventory asset and decrease your COGS, reflecting the return of the item to your inventory. Remember, this is a manual workaround and you'll need to do this each time you process a return for a drop-shipped item. It's also important to note that this might not be the best solution for all businesses, depending on your specific accounting practices and requirements. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******