The defaulting rule not working for the 'Destination Type' at the distribution level when PO is bein

Hi Gurus,

I am creating a standard PO from sourcing module after the award approval process. This PO is being created with 'destination type' = 'Expense' at the distribution level, although the item is stockable, purchasable for the ship-to-org in PO and the Accrue on Receipt = 'Yes' at the PO shipment level. Looks like the defaulting rule not working here for the PO at the Distribution level when PO is being created from sourcing.

I tried to create a stand alone standard PO from the Purchasing itself with the same item for the same ship-to-org, it is having the 'destination type' = 'Inventory'. This time the PO defaulting rule is working for the Distribution level.