How to create inventory requisitions for master items

Summary:

How to create purchase requisition with an inventory destination

Content (please ensure you mask any confidential information):

Within my clients organization all of their items are also internally orderable. This is setup for a good reason since all of the master items can be sourced internally. We are now testing the new responsive procurement pages and are trying to create an inventory requisition. But for every item we choose we get below error, 'A source organization could not be determined'. This works without any problem in classic UI, by using enter requisition line functionality and setting the source type to supplier.