Using Capacity checking method 3 in LPN enabled environment

Hello Team,

Need your inputs.

In a LPN enable branch plant I have enabled License plate for UOM = PL in Item UOM definition.(I am using Item dimension group - PDG002).

I have set capacity checking method to 3 (Quantity checking)

I have defined default container code for UOM = PL as PAL1 in UOM definition.

The location which is expected to suggested for Putaway, Location dimension group has been defined as CG7

Now I have defined Item location capacity as follows.

Location Group = CG7

Item Dim group = PDG002

UOM = PL

Container Code = PAL1

Maximum capacity = 5

The above set up implies that 5 LPNs with container code as PAL1 will be allowed on that location. After that system will suggest another location.