It converts line items to WO based on several criteria. Unless you force it, the program will not try to make things that you have on hand in adequate quantity to fill the order. Nor will it create work orders for type K items, nor type O, nor things with no BOM/Routing, etc. The help file is pretty good, so if you have not read up on each of the many options on the SO-N screen, do. Not every option is intuitive. We use the program daily and with great success.