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Is it possible to reduce stock on hand when a sales order is confirmed without validating the delivery?

Stock on hand = actual inventory - sold items

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The easy solution that you can do is that, auto validate picking once the sales is confirmed

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Any idea how to do that in odoo 14?

how would you suggest we do the actual picking then?

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normally no. because actual qty is still the same. example-customer do not take good and order cancelled. also, stock-is the same still.
auto validate delivery one of ways, but, you will not be able to validate real delivery when it will be.