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Report as finished error - quantity cannot be picked as 0 is available

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Hi, I am running AX 2012 FP where my inventory model is FIFO with no negative inventory physical 

I receive the raw item in inventory warehouse location (10) and on-hand shows that it is sitting in the correct location 

that's the only part on a BoM, the production will place the finished good at location 30 

automatic BoM and route consumption When I post the picklist it is correctly showing the amount in WIP. 

after posting the pick-list, when I report as finished I am getting the following error. 

Have anyone come across this scenario (when I allow pick negative from Inv model it is working fine). 

The quantity cannot be reduced. The number of inventory transactions on order is too low because the quantity or part of it is referenced by an output order or a production order or is marked against other transactions.

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