Why do drop ship purchase orders not contribute to...
# ask-stanley-ai
j
Why do drop ship purchase orders not contribute to Last Purchase Price?
c
AI generated answer (using internal Slack threads):
Drop ship purchase orders do not contribute to the Last Purchase Price because they do not interact with your NetSuite inventory. In a drop ship scenario, the vendor ships the product directly to the customer, bypassing your inventory. This means that the items are never received into your warehouse, and therefore, do not affect your inventory levels or the Last Purchase Price. When a drop ship order is created, it is linked to a sales order, unlike a regular purchase order. The drop ship purchase order does not generate an item receipt, but instead, it generates an item fulfillment. This item fulfillment does not interact with your inventory, and it does not require you to have the items on hand. Therefore, it does not affect the Last Purchase Price. In terms of accounting, the drop ship order does have to debit/credit accounting GL accounts at the step of item fulfillment, even if physical inventory isn't phased. However, this does not affect the Last Purchase Price, as this price is determined by the cost of items when they are received into your inventory, which does not occur in a drop ship scenario. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******
Slack thread 1: here (available only if the original thread was posted in the last 90 days)
Similarity score: 0.812215269
Slack thread 2: here (available only if the original thread was posted in the last 90 days)
Similarity score: 0.810588181
Slack thread 3: here (available only if the original thread was posted in the last 90 days)
Similarity score: 0.809898615
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