As the system rebuilds the Inventory Reserved, Total Reserved, Allocated, and On Order quantities for each item, the following logic is used for vendor shipment sales order and purchase order lines.
The quantity of open vendor shipment lines for each item is not included in the reserved, or total reserved quantity for the item. The total of the open lines is also not included in the inventory allocated quantity for the item (the logic is that the vendor is shipping the items, so the items are not reserved or allocated from your inventory). All vendor shipment lines are saved as open, and they can be completed once any order holds have been released, and purchase orders have been placed with the vendor(s) for the items to be shipped.