Repl_qty calculation for PO replenishment with repl_order_ctrl = 'S' ?

In RMS version 12, After setting a Replenishment attribute with "everyday" option, it is not checking correctly on_order quantities from existing  replenishment created PO in W status and always keep on creating orders with quantity as per max quantity set during replenishment setup for item.

Also, the on_order column in repl_results remains zero although the orders created daily have qty_ordered populated.

Expected behaviour is that it should check for on_order quantities based on orders which were created either manually or created by previous run of replenishment batches. And then orders should be created based on quantities which are not received.