Please do not update the Bin Mandatory flag via Config. Package without Validation. That will cause a bigger headache. Microsoft added a process several versions back for converting a non-Warehousing Location to a Location with Warehousing features.
I strongly recommend you try out this process in a SANDBOX first, NOT in your Production environment.
On your Location List, under the Actions Menu > Other is a choice for "Convert to Warehouse Location".
It is going to run through a bunch of verification questions and big, long messages. I strongly encourage you to read through all of it to fully understand the process.
As for your current error, it is recommended that you create a new location and set it again.
The following method is not highly recommended because it will cause data inconsistency.
In fact, you can disable the Validate Field of this field from the Configuration Package, so that this error will not be caused when importing from Excel.
Hope this helps.
Thanks.
ZHU
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