What do I need to ensure that an inventory item maybe sold as part of a sales order?

AI generated answer (using internal Slack threads):

To ensure that an inventory item may be sold as part of a sales order in NetSuite, you need to consider the following: 1. Inventory Ownership: The item should be owned by your company. Even if the item is in transit, it is still considered your ownership until there is confirmation that the goods have been received by your customer. 2. Inventory Recognition: The inventory must be recognized at all times, even momentarily. This is especially important if there's a significant lag between purchasing and shipping it to the customer. This recognition impacts balance sheets, income statements, and financial ratios. 3. Inventory Item Setup: The item should be set up correctly in NetSuite. It should be an inventory item and not a non-inventory or service item. The display name field should be populated as it would normally print on the sales order. 4. Sales Order Creation: Create a sales order for the item. If you want to create an invoice or cash sale that doesn't impact inventory, you can invoice in advance of fulfillment and then close the sales order. Alternatively, you could set the quantity to zero and then use a custom column to reflect the actual quantity. 5. Special Order Link: If you want to recognize the inventory in drop ship transactions, you can use the Special Order link in NetSuite. The purchase order would still be linked and allocated to the sales order, but you will need to receive the purchase order so the items can be fulfilled/shipped. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******

What does it mean for inventory to be recognized?

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