Error in Ax 2012: The quantity cannot be reduced. The number of inventory transactions on order is too low because the quantity or part of it is referenced by an output order or a production order or is marked against other transactions

Steps to repro this error:

1. Create SO with 20 quantities.
2. Perform Picking List with 20 quantities
3. Perform Picking List registration with 10 quantities
4. Perform packing slip with 10 quantities

Now, reduce the quantity @ SO line from 20 to 15. System throws the following error message;

To overcome this issue:

Click on Inventory -> Output order

System will not allow to select Output order menu unless quantity is changed back from 15 to 20. Change the Sales line quantity from 15 to 20 and click on Output order menu.

New form will open (Output order), click on Functions -> End inventory order

Once clicked on End inventory order, system opens the following dialog box;

Click on Ok button.

Close the output order form.

Now edit the quantity in SO line, it will allow to edit the quantity without any errors