Pick & Reservation

When we pick a sales order line, a move order is getting created which is allocated as per the designHowever this is also causing an inventory reservation to be created. Unfortunately the reservation that gets created is a soft reservation.
The problematic part is that the move order allocation is for a particular subinventory and locator combination but the reservation that is created is not on that subinv-locator combination but across org.

The issue that this is causing is that due to this reservation, we are not able to change the material status of any locator that contains this particular item, until this line is picked and shipped.