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Exclude storage location stock from MRP if its customer specific stock


Our is MTO Scenario where specific to customer production planning is done.Lets suppose customer-A requirement was 1000 kgs & against which i have MRP run & converted Planned order to production order at time of GR i was able to know that these stock has been down graded for which we have suggested storage location (fresh grade-A000 & B grade-B000).As total stock produced is pure MTO at time of GR i have passed these stock to B000.But system during MRP run is considering these as available specific to customer.

In Configuration i have done-- Define storage location MRP per plant with B000--1(Stock excluded from MRP) & maintained the same in the MRP4 tab, for Sloc MRP Indicator select '1 - storage location stock excluded from MRP' for B000.

Does these functionality only works in MTS as in MTO system is not excluding the stock ,I have tested by doing independent requirement and found found storage stock excluded from MRP working fine but in Pure MTO system is considering the B000 stock & At time of MRP no procurement proposal generation.Is there any other setting for MTO where these can be fulfilled other than blocked or restricted stocks.

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