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Requisition for Contract Manufacturing work order not created

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Requisition for Contract Manufacturing work order not created 

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Have completed all required configuration as per contract manufacturing flow per document - Master KM: Contract Manufacturing in Oracle Cloud (Setup, Functional Flow, FAQ, Troubleshooting) (Doc ID 2670566.1). Work order created created in Contract manufacturing org as expected

However, Requisition for CM Service item is not created with the following error - in Supply Chain Orchestration

"The destination type is invalid. Inventory destination type isn't applicable for this requisition line. "

The Inventory Item, Stockable and Transaction Enabled attributes are set to "NO" in Item Master for CM service Item

Not sure which setup is missing, could anyone pls help me to identify the missing setups to create Purchase requisition for CM Service item

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