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I believe its primary use is with inventory commitment on sales orders.
In the help section for Inventory Allocation Preferences
Item Commitment Transaction Ordering
Select one of the following to determine which order will have items committed to it when there is an open quantity.
- Order by Expected Ship Date – Commits only based on the latest expected ship date.
- Order by Order Priority – Commits based on set customer priority regardless of transaction date or expected ship date. When the Item Commitment Transaction Ordering preference is set to Order by Order Priority, then an Order Priority column is displayed on forms for work orders, sales orders, and transfer orders. NetSuite uses this field to calculate the order priority for allocation.
- Order by Transaction Date – Commits only based on the latest transaction date.