NetSuite Enterprise Resource Planning (ERP) Consultant Practice Exam

The first statement about intercompany inventory transactions being supported for both Drop Ship and Special Order transactions is accurate because NetSuite allows these specific types of transactions to occur between subsidiaries. This functionality is critical for businesses that operate under a multi-subsidiary model, as it streamlines the process of fulfilling orders that need to be shipped directly from one subsidiary to another or when fulfilling special orders that are initiated by customers.

Understanding this feature is essential for businesses that often engage in intercompany transactions, as it can greatly enhance efficiency and ease the management of stock across different locations. In contrast to other inventory transaction types, Drop Ship and Special Orders have specific mechanisms in place to ensure the operational needs of multiple subsidiaries are met while also maintaining comprehensive tracking and reporting on these transactions.

The notion that inventory must be valued at the same cost in both subsidiaries is misleading since it does not reflect the flexibility of financial practices relating to intercompany transactions. Each subsidiary can have its own accounting treatments and cost valuations.

The statement regarding Pick, Pack, Ship not being an option for intercompany transfers is not aligned with the capabilities of NetSuite, which does provide mechanisms to facilitate intercompany fulfillment, including packing and shipping functionality.

Lastly, while there is an "In Transit" option