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Return Components

My client is having an issue with serial number items and returning components from a Production Order.

Here are the steps we are taking. 

  1. Create a Production Order that has a BOM component item with the Serial Number Management method as shown below. See item 1025979.
    1. Manage Item by: Serial Number
    2. Management Method: Release only
    3. Automatic Serial Number on Receipt: Checked
  2. Complete Issue Components for 1025979
  3. Open Report Completion from Production Order, select the Production order and click on “Return Components”.
  4. Select 1025979 from the list and click on “Add”
  5. SAP throws an error, Fully Allocate item in bin locations”. Fully allocate item "1025979" to bin locations in warehouse "10"

Is there a setting we have that is incorrect? 

Thank you, Jeff

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