IB creation error when Profile "Service: Inventory Validation Organization" is set to different valu

Hi,

We are in 12.1.3 and as part of merging and acquisition, we have a new OU defined and all the Inventory for that OU have a different Item Validation Org. Before acquisition, when we create IB, the Organization Name (In Install Base screen) was defaulting to original Item validation Org which was set at Site level. Now, since the item Validation org for this new OU is different, I have setup the Profile value "Service: Inventory Validation Organization" to correct Item Validation Org at Responsibility level associated to new OU.

When the profile is set, the creation of IB fails with error "Invalid usage item". This is occurring only when the serialized item is associated to counter group before IB creation.