Ability to Identify a Location as an Employee Location functionality not working as expected

We need a solution to segregate locations between HCM and Procurement. Procurement team is seeing additional locations while creating Purchase Order and if incorrect location is selected, it results in PO getting rejected. On researching on CCC, I found a plausible solution to this problem.

Ability to Identify a Location as an Employee Location (https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/cloud/r13/wn/ghr/releases/21D/21D-hr-wn.htm#F19886)

I made the changes as per the steps provided in above article which was to display the Employee Location Flag field from Transaction Design Studio on Create Location field. I then created a new location with Employee Location flag enabled.