Product: Intercompany Transactions
SuiteApp: SuiteApp/Bundle name and version
If your Preferred Vendor is an Intercompany Vendor then the system will identify the transaction as an Intercompany Drop Ship Order.
An Intercompany Vendor/Customer is a customized entity record with an additional field: Represents Subsidiary. The Represents Subsidiary field indicates that this entity acts as an agent for a selected subsidiary. An Intercompany entity can be used only for Intercompany transactions.
Please open the Item record used from your Sales Order
From the Item Record > Purchasing tab > Vendors sub tab > Open the Vendor record
From the Vendor Record, look for REPRESENTS SUBSIDIARY from the main line.
Thus to resolve the concern, you may need to change the Preferred Vendor set from the item record to a Regular/External Vendor