Inventory commitment preference defaulting BP which does not availability

Hi,

I have couple of questions related to the inventory commitments.

1. It is related to inventory commitment preference.

We have done all the required setups for inventory commitment preference.

When we enter the detail line in the order, it is defaulting to the BP which set as first preference in sequence in preference detail , through the availability is in negative or zero but BP has on hand quantity. I expected that it would default to the BP where there is a availability as per sequence setup in preference detail.

Can someone please help me that whether inventory commitment preference works based on available qty or on-hand quantity.