Error when creating PO with reference to PR

Hello Expert,
When creating PO with reference to PR I encountered with one error i.e. system is taking into consideration one to one relation of PR line item to PO line item. For example: I have created PR with one line item for XYZ value and with reference to PR line item I am creating one PO but with two line items in PO that means I am splitting PR value into two line items in PO, 1st line item with zero tax and second one is with tax.
So there is one PR line item but in PO I am creating two line items with reference to single PR item. In this case system is giving error saying Item 001 WBS element XXXXXXXXXX budget exceeded. message no: BP604. However if I create single line item in PO then it wont give any error.
Please suggest any customization setting is done for such kind of behavior of the system.
Thanks
Shyam

Hi,
SAP creates the requisition with item category "U" even in case of cross-company (intercompany) purchase requisition.
When converting it to PO the item category becomes blank - as I tried and I got no error message.
Please check your settings under SPRO > MM > Purchasing > Purchase Order > Define Document Types (V_T161). You will see (if standard settings have not been changed) that NB requisition type with "U" item category is allowed for NB purchase order type with " " (empty) item category.
Regards,
Csaba

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