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Drop-Ship effects on "On Order"

Hello All.  I am looking to turn on the drop ship functionality.  I have what I think is a simple question. 
In the Drop ship documentation it says. "Because drop ship items are not received into your inventory, they do not impact your inventory asset accounts or affect your stock count...."
I assume this does not refer to the "On Order" field in the inventory item... 

I assume an item i have on order with my vendor,  whether drop ship or standard will show "on order" for that inventory item correct?

I have not turned this on, so I can't just test it out.  Thanks

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