Enable Warn on Shipping

The Warn on Shipping functionality prevents you from creating shipments on sales orders that do not have sufficient stock to be fulfilled. 

To receive a warning when you attempt to ship products that are out of stock, go to to Settings>>General Settings. Select Warn from the dropdown list for Warn on Shipping. 

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Save the changes.
You will now receive the following warning when you attempt to ship products that do not have enough stock to fulfill the order. 

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