How to setup a default inventory status in Microsoft Dynamics 365 F&SCM
Inventory status can be categorized as available or unavailable. You can use the inventory blocking parameter to block items with an unavailable inventory status. Items with a blocked status are considered physical inventory and cannot be used in a production order, sales order, transfer order, or outbound transaction.
After you have set up an inventory status you can set the default inventory status for a site, item, and warehouse. You can change the default status on the mobile device or on the purchase order, sales order, or transfer order line.
Below is the diagram of forms where you can set up a default inventory status.
More details can be found here:
This was a summary on how to set up default inventory status.