What is the standard process in NetSuite for handling inventory depreciation?

AI generated answer (using internal Slack threads):

****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** In NetSuite, handling inventory depreciation, especially for serialized inventory items or fixed assets that are also inventory items, can be a multi-step process. For serialized inventory items, you can use the inventory adjustment feature to reduce the inventory value without affecting the quantity. For fixed assets that are also inventory items, the process can be a bit more complex. If the item is sold, it can simply be deducted from the inventory. However, if it's leased, it needs to be deducted from the inventory and then start depreciating as a fixed asset. This can be achieved by first fulfilling the order, then creating a Journal Entry for the cost of the machine and an asset proposal. In cases where there's a significant lag between purchasing and shipping the item to the customer, it's important to recognize the inventory at all times, even momentarily. This can impact balance sheets, income statements, and financial ratios. One way to handle this in NetSuite is to use the Special Order feature. This allows you to link and allocate the Purchase Order to the Sales Order, but you will need to receive the Purchase Order so the items can be fulfilled/shipped. Please note that these are general guidelines and the exact process may vary depending on your specific business model and requirements.