This article is relevant if you are using NetSuite’s One World and working with inter-company transactions.
Background
In a recent client implementation of One World, our client has two organizations: a Selling company and a Fulfillment company. We setup the following transaction flow leveraging NetSuite’s inter-company transaction management:
- Selling company captured Sales Orders from a custom Magento eCommerce web site.
- Inventory items are marked for Drop Ship to be shipped from Fulfillment company.
- Selling company generates a Drop Ship Purchase Order to the Fulfillment company.
- We generate inter-company transactions to produce a Sales Order in the Fulfillment company.


Hi Marty, thanks for another great top on solving a gritty business problem.
When I looked at drop-ship, and separately at inter-company transactions, it seemed to me that you could not combine the two pieces of functionality out of the box. However, you imply above that this is possible ?
Hello Paul,
Indeed, I think I may have produced confusion. The client speaks of the transaction as “drop ship” to the fulfilling subsidiary.
The NetSuite Item type needs to support inventory. Yet, the selling organization produces a drop ship on an inventory item to generate the intercompany PO to drive the process. That same item is inventoried in a location supported by the fulfilling subsidiary.
Let me know if that helps.
Marty