Currently MOs can only be created from SalesPad with a status of "Quote/Estimate" or "Open". Neither of these statuses will allocate components, so the only option is to re-open the MO in GP and change the status to "Released" there.
Note, along with this functionality we should also have the ability to edit MO Qty, Due Date, Description, Priority, etc. on "Released" MOs. Also the ability to delete a "Released" MO from SalesPad.
Thank you for this idea! We already had a potential future case for the concept of releasing the MO and generating the picklist from within SalesPad, so I have added these additional details to that case so that we can review them as well.