Allocate All function ability for items "On Hold"

When a customer selects "Allocate All" on a Sales Order that contains items marked as "On Hold," the system reports that it cannot process the order due to the presence of these "On Hold" items, and it fails to proceed with allocating the remaining available items.
The system should behave in the same way it does when an item is on backorder—simply indicating that the item is on backorder—while still allowing the rest of the order to be processed.
Case number: 00293243