Any Setup that Reservation Process at Order Receipt includes supply other than on-hand inventory

Summary:

Please advise on setup methods for the reservation process at order entry that include supply sources other than on-hand inventory.

Content (please ensure you mask any confidential information):

When entering an order for an item with zero on-hand inventory,
even if there is an outstanding purchase order quantity, the reservation is not automatically created and the reservation process results in an error.
(Error message: The reservation quantity exceeds the available quantity, so the reservation could not be created.)

Please advise if there is any setup method to enable automatic reservations in such cases.

Version (include the version you are using, if applicable):