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Allow Future Ship Date - functionality is enabled but shipping transactions still get stuck

We have enabled the parameter 'Allow future ship date' for our organization under Manage Shipping Parameters.

So we assume that a Sales Order with a future ship date, i.e Shipping Transaction Date GREATER than current date should pass through successfully.

But this is not happenings. Sales Orders which have a transaction date in future are getting errored out and get stuck in Inventory Pending Transactions. The error message is "You must enter a transaction date that is on or before today's date"

Can someone please tell me what exactly is the purpose of this checkbox? What are the type of transactions which are allowed to have a future date and what transactions are prevented?

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