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"Select Supply Source" FOR TRANSFER ORDER IS NOT AVAILABLE

Summary:

"Select Supply Source" FOR TRANSFER ORDER IS NOT AVAILABLE

I am creating an ad-hoc Transfer Order from Inventory management->Manage Item Quantities UI.
I am unable to select supply source. I have done below setups. Please help me with what I am missing.

Organizations:
Did you already setup interorganization parameters between the source organization and the destination organization that you are trying to use?
Yes, Inventory Destination Transfer Type as "Direct"

Did you also set transit times between the internal locations of the source org and the internal location of the destination organization?
Yes

Did you define receiving parameters of the destination organization?

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