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Microsoft Dynamics AX (Archived)

Unable to cancel product receipt for direct delivery purchase order

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I have an intercompany sales order that has a direct delivery purchase order tied to it. I posted a partial product receipt on the purchase order (which propagated transactions on both the intercompany sales order and intercompany purchase order as expected). Now, I'm trying to cancel that partial product receipt but encountered the error below:

"Quantity 1.00 cannot be picked because inventory transactions with status On order, Reserved ordered or Reserved physical are insufficient."

Direct-delivery-cancel-product-receipt-error.png

I also tried canceling the packing slip on the intercompany sales order and I get the same error.

Note that when I created the purchase order associated to the intercompany sales order, I selected "Purchase order" instead of "Direct delivery". I'm not sure if it makes much difference.

Sample illustration:

Purchase order: ABC-PO12345, company: ABC -> Encounters error when canceling the product receipt for this

Intercompany sales order: ABC-SO12345, company: ABC ->  Encounters error when canceling the packing slip for this.

Intercompany purchase order: DEF-PO1234, company: DEF -> I can successfully cancel the product receipt tied to this one. 

Has anyone here tried cancelling product receipts for direct delivery POs? Is there an extra step that I should do before doing the cancellation?

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