Over Completed Quantities from MFG not being considered for B2B orders

Summary:

This is a B2B make scenario where we created an SO for 4 Qty, and subsequently, a work order was created for the same.
We actually over completed the WO to 14 Qty. Now 4 Qty which got reserved to the SO previously and the over completed 10 qty is now available to reserve and transact. Then when we revise the same SO to increase the Qty from 4 to 14, for the extra 10 Qty , system is not taking up the available on hand qty, rather its creating a new supply order(WO) for 10 Qty without considering the on hand qty.
We need the system to consider to the available on hand Qty before creating the WO. Please let us know if we are missing something.