The Equipment "Compatibility Rule" not being considered while assigning equipment

An Equipment is defined and assigned to "ON HAND" bucket for Loc A. For same Equipment to Loc B  IN-COMPATIBILITY rule is defined. Fleet shipment is built going from Loc A to Loc B. While trying to assign the equipment to Shipment, it is expected to fail since the Loc B incompatibility is set. However, it is NOT happening and the equipment is getting assigned to the shipment.