When it comes to shipping out quantity of a SKU with a Sales Invoice, Megaventory first ships SKUs from the stack of quantity of SKUs that have been billed for. When the stack of billed quantity of a SKU ends, Megaventory ships from the non-invoiced (received on consignment) quantity of this SKU.
Similarly, when it comes to Production Orders, invoiced products/components are allocated first and when they are all processed, the non-invoiced quantity (quantity received on consignment) is allocated.