Shipments in AX 2012


I am facing an issue with transfer orders when i try to post shipment for an item with pallet transport activated.

What happens is that whenever i try to do shipment for the Item through the Transfer Order, then the system throws an error saying:

‘Cannot receive quantity 1.00 because inventory transactions with status Ordered, Arrived or Registered are insufficient.’

I have not checked the Auto receive option and neither check the explode lines option on the Shipment. No clue why this error is coming. Also, activated the locations and pallets for all the Source, Destination and transition Warehouse.

This happens when i don’t enter any Location or Pallet ID on the Transfer Order line.

However, when I add the location and the pallet ID on the Transfer Order line, then this error does not take place.

Any inputs, will be very helpful.