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"reservation hierarchy" error while doing inventory transaction (not using Warehouse management of R3)

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Hi Friends,

while doing a simple inventory movement transaction, we are getting  the following error

"A reservation hierarchy must be set up for the item. You can create transactions for the item after a reservation hierarchy has been set up." 

As per the following blog, hierarchy is required only when we use "Warehouse Management" module. 

https://technet.microsoft.com/en-us/library/dn553195.aspx

We are not using warehouse management module. (But the configuration key is enabled) 

Can you please suggest what are the other possible reasons that it is asking for this? 


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