It sounds like the best solution would be to Park the shop order. You can define a Park Reason to not Include the shop order as supply. I.e. MRP will not see this as a supply. Same setting is available for shop order demand. Optionally you can select a location where the work in progress is stored.

Another option would be to receive the shop order with a W/D/R Number to indicate it is not complete yet. You can then set an Availability Control ID on the received stock record configured to not make this material available to be used for reservation/issue or MRP netting. You could then use a repair shop order to finish the production later on.

We were looking at a solution which involves a custom field on the SO header. Material would be issued issued to the SO and then the operators would make an entry in the field if it was issued but not built. We used this as a potential solution where material was issued to SO prior to it being built.

It got shelved as the managers said they would not part issue kits. They do.

Out consultant did not explain Park to us - this may be something we look at now.

Thanks