Item inactivation at the BU level not taking on-hand quantity into consideration?

I was hoping that someone might have more intimate knowledge in this arena. Currently when one of my BUs inactivates an item, PeopleSoft does not take into consideration any on-hand quantities still in showing in the PHYS_INV table. As a result the items are inactivating, leaving the remaining stock in the system unable to be used. When these items are identified we then have to reactivate the item and transfer / express issue / whatever the remaining balance and then inactivate again.

I know that at the SHARE level, before an item inactivates, the on-hand quantity of the item must be zero. Is there any way to create this same functionality at the BU level as well? Was this the intended way for item inactivation at the BU level to work? Any assistance would be greatly appreciated.