how does a drop ship item fulfillment impact cost of sales?

AI generated answer (using internal Slack threads):

When a drop ship item is fulfilled, it does not impact the Cost of Sales in the same way as a regular inventory item. This is because the item is not physically present in your inventory and is shipped directly from the vendor to the customer. In the context of NetSuite, when a drop ship item is fulfilled, it does not affect your on-hand inventory. The Item Fulfillment record is used to track the shipment of the item from the vendor to the customer, but it does not interact with your inventory or cause any changes in your inventory levels. The cost associated with a drop ship item is typically recorded when the vendor's invoice is received and posted, which will then impact the Cost of Goods Sold (COGS). This is different from a regular inventory item, where the cost is usually recognized at the point of Item Fulfillment. Remember, the shipping cost associated with a drop ship item does not show up on the Item Fulfillment GL impact. The shipping cost is tied to the Sales Order/Invoice/Cash Sale, not the Item Fulfillment. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******