3508932 - Error 'You cannot carry out goods movements involving this logistics area. To be included in goods movements processes the logistics area or one of it'

After inputting and consuming a specific product in the production process, a production confirmation is generated. Subsequently, the source logistics area A of the product is no longer marked as inventory managed. Later, when reversing the relevant production confirmation, the stock returns to the source logistics area A, even if it has been marked as non-inventory managed.  As a result, system doesn't allow to move this stock and the following error message occurs:

Error: "You cannot carry out goods movements involving this logistics area. To be included in goods movements processes the logistics area or one of its parents in the location layout must be inventory-managed. "

SAP Business ByDesign

Steps to perform goods movement for this product:

1. Go to work center Internal Logistics.
2. Access common task Goods Movement.
3. In step 1, maintain all mandatory fields, click Next.
4. In step 2, maintain Product Moved Quantity and Target Logistics Area ID, click Next, the above error triggered.

Steps to perform inventory adjustment for this product:

1. Go to work center Physical Inventory.
2. Access common task New Inventory Adjustment.
3. In step 1, maintain all mandatory fields, click Next.
4. In step 2, click on Add Row and input Logistics Area A in the pop-up, the above error triggered.

Prepare in advance:

• The logistics area A is a parent logistics area of logistics area B.
• There is another empty logistic area C in system.

Here is a workaround to resolve this issue:

1. Logistics area B needs to be maintained as emptied and Inventory Managed indicator needs to be removed. 
2. Then Inventory managed indicator needs to be set to logistics area A.
3. Select a no stock logistics area C as the triggered logistics area, and it needs to be maintained as Inventory Managed .
4. Goods Movement or New Inventory Adjustment need to be done for stock under logistics area a to logistics area C.

*A, B, C represent to different logistic area ID respectively.

Reverse production confirmation, Logistics area,  Inventory-managed, Non-inventory managed, Goods movements, New Inventory Adjustment, Stock overview , KBA , AP-LAS , Logistics Area and Storage Management , Problem