Is there a way to restrict the generation of the picking list to only be for the quantity that you have on-hand?
Adding the below seemed to help get there, but doesn't get us the whole way. It doesn't release lines that are on order fully. If the sales order was for qty of 10 and we have 3 in inventory, there are two lines being generated when the picking list is created. One for the batch that has the 3 and then another line for 7 which are on order. Is there something that we can configure to where the line for 7 wouldn't be on the picking list?
inventory transactions, Issue status: Reserved physical.

Added the join > Inventory transactions originator > inventory transactions.

Using simple warehouse due to integration setup with third party.
Reservations are automatic and auto batch reservation is on.