Inventory Management - EBS (MOSC)

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Inventory - Material Status and lot not longer on hand

in Inventory Management - EBS (MOSC) Question

We are implementing Material Status for lots in R12 - I have been able to create the new material status for the lot level, subinventory levels and mass update the on hand items using the mass update in the Material Workbench.

My question is all the old lots which are no longer on hand show a Material Status of Active - which is had all usage levels checked - Subinventory, Locator, Lot, Serial and On hand - -

I am thinking I should disable this material status but cannot  - the message is Cannot update status - onhand inventory or inventory locations exist with status Active -

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