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Then creating an invoice for a stockable product, the quantity on hand does not decrease unless I also create a separate delivery order and deliver the product. Is this normal behaviour? Shouldn't I be able to simply invoice items?

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Yes, it's a normal behaviour, The stock value will be decreased after the Delivery order Confirmation ( products delivered to Customer).

The same behaviour for Purchase Order, the product Quantities remains in Incoming State untill the Delivery Order is Confirmed and the products received.

Stock -Delivery

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