Locator Control Capacity not restricting when exceeding its limit and also want to know about the it

Locator has a capacity of 1000 items

Locator has 400 available items

now we create a Move Order or other receiving transaction on this subinventory for 700 items, system is allowing the transaction.

What is the purpose for giving the capacity then for locator? Is it only useful for Min-Max planning?

Client required that Sub Inventory must have a authorize/allowed qty of item for transactions like Move Order, requisition etc.

Sub A allowed Item AB Qty 1000

Sub A currently has 900 qty of item AB

System should restrict user to order only 100 qty for item AB.

Is there a possibility in Oracle Inventory?