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Supply chain | Supply Chain Management, Commerce
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Automatically posting consumption for BOM lines with line type "Pegged Supply" doesn't work

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I have setup a BOM with a line type "Pegged supply" and flushing principle "Finish". The line is automatically created during estimation of the corresponding production order of my finished good.
 
I would now like to automatically consume (backflush) this item when I post the RAF journal of the finished good. The checkbox "BOM consumption" is set to yes. It usually works to backflush but now with the setup of pegged supply it doesn't work for me. The system tells me that there is not enough on-hand even though it is. I also have got all dimensions setup in the BOM (see above - site, whs, location, iv.status is all defined).
 
 
 
If I do the same scenario without pegged supply then the backflushing is working and system automatically posts consumption of this bom line.
 
I realized that with pegged supply the backflushing only works if I manually set the inventory marking for this BOM line. I saw that for pegged supply lines the reservation is set automatically, however, not on location level. I think this is the missing piece, I would need to have reservation down to location level but don't know how to set it up. On reservation hierarchy I can't go down to location level....
 
Is there any setup that can be done to set marking automatically? Or is there any setup missing? 

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