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Got a note..Yes this is not available
Can Not Create An Internal Requisition From A Dropship Order. DROP SHIP INTERNAL SALES ORDERS. ALLOW SOURCE TYPE 'EXTERNAL' [ID 1428845.1]
There is an Enhancement Request for this functionality:
ER 5916752: NEED TO DROP SHIP INTERNAL SALES ORDERS. ALLOW SOURCE TYPE 'EXTERNAL'
You can use intercompany flow.
Typically it works as follows:
1. SO is booked with respect to OU1/Org1, but on sales order shipfrom warehouse is populated from OU2/org2.
2. Pick Release and Shipconfirm happens from org2 to customer.
3. There are concurrent programs which create intercompany invoices between org2 and org1 and AR invoice is created between org1 and customer .
essensially, it would be same as dropship!!