Nothing to handle means the function you ran found no line it is allowed to act on, not that the document is empty. In practice the quantity is already handled, the source document is not released, or the quantity sits in a bin or a reservation the function cannot use. Release the source document, then check the outstanding quantity and the bin behind the line before running the function again.
Create Pick, Create Inventory Put-away, Create Inventory Pick and Get Source Documents all work from a filtered set of lines rather than from everything on screen. A line only qualifies if the source document is released, if there is still an outstanding quantity to handle, if the quantity is available in a bin the function is allowed to take from, and if a warehouse activity does not already exist for it. When none of the lines pass all of those tests, the function has nothing left to write and stops with this short message. Recent versions append the specific reason, for example that the quantity to be picked is in a bin set up for receiving or shipping, which is worth reading before anything else.
This message is nearly always a symptom of an incomplete flow rather than a defect: a document that was never released, a receipt that was posted into a receiving bin and never put away, or a second attempt at a task somebody already did. Making release part of the standard order routine, and putting away receipts on the same day so stock leaves the receiving bins, removes most occurrences. When several people handle the same warehouse, checking the existing warehouse activities before creating new ones avoids the duplicate attempts that produce this message.
No. The lines are there, but none of them qualify for the function you ran. The usual reasons are that the document is not released, that the quantity has already been handled, or that the quantity is not in a bin the function may take from.
It only lists released documents whose location matches the warehouse document and that still have an outstanding quantity with no existing warehouse document. A document already pulled into another warehouse shipment or receipt will not appear a second time.