A Sales Order with two different Drop Ship Items but with the Same Preferred Vendor generated 2 Purchase Orders

Solution:
  
Check the Item Type, if it is a Non- Inventory For Resale/ Sale, make sure that the Can Be Fulfilled/Received preference is enabled for both Item Records. If it isn't then the system would create two Purchase Orders. The Purchase Orders that would be generated would have different status.
 
If Item X - Can be fulfilled/Received = T, the status of the PO would be Pending Receipt.
If Item Y - Can be fulfilled/Received = F, the status of the PO would be Pending Bill