R12 - item on internal requisition with no supply - Iprocurement

Hello
as from R12, whenever an item is put on a contract only that item is shown
so if an item is both purchaseable and internally orderable....
and put on a contract as well

so this means that the user will only see the item from the BPA
but due to the sourcing rules if we say that the item is to be ordered internally (internal requisition)
it will still create an internal requisition ???

thanks
els

als what happened to the profile option POR: Auto-source internally stocked items with no availability
in R12

what happens if an item , if there is no stock internally ,