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VMI replenishment is not working for non-stocked items

Summary:

Hi Oracle,
Could you please clarify the following situation?

Explaining the situation:
Key users need to process Vendor-Managed Inventory using non-stocked items.
Product Information Management > item is set as:

  • Stocked = No
  • Transaction Enabled = No

The supplier is replenishing those items. However, the system displays the following error:
The destination type is invalid. Inventory destination type isn’t applicable for this requisition line.

Then, in order to make the process works:
If the Product Information Management > item is set as:
Stocked = Yes
Transaction Enabled = Yes
When the supplier is replenishing those items, the process works as expected.

However, Key users need to process Vendor-Managed Inventory using non-stocked items using this setup:

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