Work Order Completion for Serialized parent item

Hi,

I am facing an issue (WS A 7.3) while completing WO which has parent manufactured item as serial control item (the components are NOT serial control). Following are the setups

1. Parent Manufactured item is defined in Item branch plant with Lot process Type =5 (Faced similar Issue with Lot Process type =7), Serial No. Required =Y

2. WO Completion (P31114) has following processing option set to 1

     ITEM LOT OPTIONS:                                                          

       16. Enter a '1' to allow overriding          1                           

           the lot number upon completion.                                      

   SERIAL NUMBER PROCESSING:                       

  22. Enter a '1' to allow replenishing         1

      of a LSN that exists in the system.        

      If left blank, no duplicate LSNs