ATO Item-does system check for on-hand inventory before creating a job?

If an order is placed for an ATO item (not configured, it is a standard item, but only made to order), does the workflow check to see if on-hand inventory exists before creating a job in WIP?

If there is inventory available for such a product, ideally, I am hoping the system checks and reserves inventory and if not available in stock, sends a request to WIP to create the job.

From my review of the docs, it does not appear that the system will check for on-hand inventory, but always issues a request to create a job once the order is booked. Could someone confirm if this is accurate/how it works?