A customer put in an order and we drop shipped the item from our vendor with a drop ship PO. We fulfilled the Sales Order/Purchase Order and invoiced the Sales Order, but the customer paid the vendor directly. How do we track that in NetSuite, ensuring the invoice is credited and the PO is closed without hitting inventory?

AI generated answer (using internal Slack threads):

In NetSuite, to track a situation where a customer pays the vendor directly for a drop shipped item, you can follow these steps: 1. Create a Sales Order (SO) for the customer order. 2. Create a Purchase Order (PO) for the vendor, linked to the SO. This is your drop ship PO. 3. Fulfill the SO and invoice it. This will show the invoice as open. 4. Since the customer paid the vendor directly, you can create a journal entry to debit Accounts Receivable and credit an appropriate expense account (like Cost of Goods Sold). This will offset the invoice. 5. Close the PO. Since the item was drop shipped, there's no need to receive the item into inventory. Remember, this process does not affect your inventory levels since the item was drop shipped directly from the vendor to the customer. Please note that this is a workaround and may not perfectly fit your business process. It's always recommended to consult with your NetSuite administrator or a NetSuite professional to ensure this process aligns with your business operations and accounting practices. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******