Reservable flag is set to Yes at Item Master Level for Return Transfer Order

As per the client requirement, we have configured an IRTO Transaction with Transfer Type as In-Transit and Receipt Routing as Direct Delivery. Once we transfer an Inventory Item from one INV ORG to another INV ORG based on the Internal Requisition and then picking, shipping from the source INV ORG, later in the Receiving INV ORG we receive the goods.

After that when we try to create Return of the Transfer Order. However, it was throwing an error as "The receiving transactions couldn't be processed for 1 receiving transaction lines."

Based on one of the Community link, we saw that the Item should have "Reservable Flag" enabled at Item Master Level.