Warehouse Shipment
A warehouse shipment order line is fulfilled using inventory from one of your warehouse locations. Warehouse Shipment lines are allocated to based on the available stock in the warehouse the line is entered for, and the scheduling and other information in the sales order line.
Warehouse shipments can be used for both stocking and nonstock items.
Nonstock warehouse shipment lines should allocate immediately as they are saved.
If a warehouse shipment for a stock item is entered, and the line is scheduled for
shipment in the current scheduling window for the item (based on the lead days in the item record), and the item is available, the order line will be saved as open and with an allocated quantity (the lesser of available or the amount ordered). If the item is not available, the sales order line will be saved as a backorder, with a 0 allocated quantity.
Warehouse shipment lines will have “N” entered into the Vendor Ship and Special flags in the sales order line.
More:
Warehouse Shipment - Sales Order Entry