What does it mean for an inventory item to have inventory recognition?

AI generated answer (using internal Slack threads):

Inventory recognition for an inventory item in NetSuite refers to the process of acknowledging the ownership of the inventory item in the company's General Ledger (GL). This is typically done when the item is purchased from a vendor/supplier and is ready for delivery but has not yet been shipped to the customer. In some business industries, even though the item is immediately shipped to the customer, they still recognize the inventory asset in their GL during posting and then reverse it out once the item has been shipped to the customer. This is important for businesses, especially at year-end and month-end, as it impacts the Balance Sheet (BS), Income Statement (IS), and financial ratios. However, it's important to note that the Dropship feature in NetSuite does not allow for inventory recognition. A workaround suggested in the threads is to use the Special Order link instead. The Purchase Order (PO) would still be linked and allocated to the Sales Order (SO), but you will need to receive the PO 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. ******