David,
The item is active in the GS location in IC12, but I do not see a Purchasing field on that form.
The uom on the req was PR and it was an Owens & Minor order. The item type on the req is labeled Inventory and I'm thinking it should be non-stock.
I also know that O&M will kill any LUM items that may be on backorder but not sure if this is the case, since it's gloves.
ANSWER: An item can be established as a non-stock by either (1) not building it at all in a given from location, or (2) building it and setting the Inventory Tracking to "N".
Side note: If an item is setup with Inventory Tracking = Y, then changing the Inventory Tracking flag from "Y" to "N" will change the item from Inventory to Nonstock.
Create a new requisition for this item using the same FROM LOCATION ("GS") that was used originally (or sit with the requester and have them do this). After the req line is created, poke around on the req line in RQ10 and look at the item type (and the create PO flag). If the the ITEM TYPE = "N" and the CREATE PO flag = "Y" then the item is a nonstock. Alternatively, if the ITEM TYPE = "I" and CREATE PO = "N", the item is an INVENTORY item.
From what you have shared above, I think you will find that the item gets built as a non-stock and your problem of worrying about the fill/kill functionality is resolved. In other words, since the item is now setup as a non-stock, the fill/kill functionality won't matter any longer.
That said, you may still want to know how the item was first built, in which case you need to look at the original requisition to determine the ITEM TYPE. If it was built as an Inventory Item on the original requisition, then you can rest assured that the problem won't happen again, since you now know that item will be built as a non-stock in the future. However, if it was a non-stock on the original requisition, then you need to consider that a buyer probably cancelled the original req line. Let me know if you need help with figuring that out.
Back to the test requisition from above, if your test reveals that the item gets built as an INVENTORY item on your test requisition, then let us know - something is really goofy if an item that is setup in IC12 with Inventory Tracking = "N" get built as an Inventory item.