Behaves like stock allocation was turned off. This has several implications. No stock allocation.
If you create a shipment, for eg by clicking on the ship button or by auto warehousing, the whole on-order quantity will be extracted to the sale shipment. Whether or not there is sufficient stock to supply the goods. Sale shipments include everything on order when stock allocation is turned off. This could be used in the case where the customer has their supply type set to Ignore and their order is always drop shipped from the supplier (purchase order raised from sales order).
You can set a supply type on all lines of the sales order to Ignore and hit the ship and use the Show In Report to get a Pro Forma Invoice that you can send the customer before you do invoice them. | 
