Shipment organization defaults to wrong organization for an item

Hello,

We have an issue with one of the items in our organization. When creating a PO, the shipment defaults to organization 401 and when we change to the intended organization which is 111 and save. It saves but reverts to 401 when we reopen the shipment page. We noticed that line 2 works properly for the item as this defaults to 111 as expected. What could be the issue with the particular item. The item was assigned to this organization and we have checked other requisite setup.

Please assist.