Can't edit location on credit memo for serialized item

A serialized inventory item was received to the wrong location. I would like to simply edit the credit memo and choose the correct location. When I edit the credit memo and change the location, I receive a warning that doing so will remove the inventory detail (the serial number) from the items - this makes perfect sense. However, when I attempt to enter the serial number for the item, it says "This serial number already exists in inventory. Please enter a different serial number."

NetSuite seems to think the item is still in the location that was first put on the credit memo and it's not recognizing that I am trying to change that location. I know I can do an inventory transfer but it seems absurd that I cannot simply edit the credit memo to change the location. Am I missing something?