I can't seem to enter/ update an SO and we have recently restocked, thus the quantity should cover the sale. What am I missing?

This error message is very common:

It only means that you need to link the Sales Order and the Inventory. For that, go to the "Edit" option in the three-dot menu. 

Scroll down until you reach the section "Items".Type the number of the part you want to sell, and a list will unfold. Make sure you select the part from that list.  

Click on save at the end of the page, and that's it! Now you'll be able to Enter/Update the Sales Order.

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