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I created a supplier S1 and customer C1. I tried to create a sales order for a product that is drop ship enabled and has S1 chosen as the preferred supplier. After I confirmed the sales order to C1, it's not generating a corresponding purchase order from S1. 

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make sure that you have make to order option  true (in product )  if you need to raise Po based on confirmation of sales order 

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Hi,

Make sure that you have added a vendor to the product .Only if the vendor is added to the product the purchase order will be created.You can refer the video.

https://youtu.be/xsL_bksihTM

Regards

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