HI @jwarren 

Is this item on hand? If so, you do not need to mark for PO, that may be why it is throwing that error. 

Thanks for the reply - it was marked for PO so it could be purchased directly from the SO. It is in stock now - that being said even once unclicking mark for PO, the same error arises.

Strangely, if I go to Line Details and I un-allocate the item, I’m able to create the shipment. However this defeats the purpose of issuing a PO directly from the SO, since you need to un-allocate in order to ship it? And then once you go to shipment you still need to make sure you select the correct location/lot … 

Not sure if others have experienced this issue?

Hi @jwarren ,

Is the PO linked to the Sales Order?

If so, has the Purchase Receipt been released?

Yes and Yes.

And it's allocated within Line Details.

Hi @jwarren ,

It looks like this may be due to data corruption, but I can’t be sure.
As a workaround you could try un-linking the PO, delete the line, add it again, then link the PO again.

You could also try running the Recalculate Inventory process.

I am not sure, though, of the root cause here. It looks like everything is setup correctly.

Thanks Hannah.

I reached out to Acumatica Support and have learned this error was due to the Operations settings within the Sales Order Type. I had shipment plan type set to SRVBOOKED instead of SOAllocated.