Item level hold not applying to whole Order in SO Detail Entry

Hi All,

I am creating a Transfer Order(ST/P4210) to test the Item Restriction functionality (Restricted Items should go to XY hold as per setup).

Consider an Item 12345 is restricted for the Branch/Account in the Rights Restriction application.

I am using the item 12345 in my sales order. During the Order entry, after entering the item and I press down(Moved to next line), a warning “Item has been restricted” is displayed.

I submit the order, the Order shows only CS hold under Hold codes and the XY hold is not getting applied to the Order/Line. I checked in the Work with Held Orders application.