Solved! Go to Solution.
QuickBooks doesn't create a purchase order for a drop shipped item automatically. Unless, you automate a memorized purchase order.
You'll want to create the purchase order manually. With this, you'll be able to follow Rustler's suggestion in recording the drop shipped item.
You can also use this link to know how Accounts Payable works in QuickBooks Desktop: Accounts Payable workflows in QuickBooks Desktop.
I'd also recommend reaching out your accountant. They might have other ways of recording it that may suit your business setup.