PO not generated at backend in classic scenario

Hi,
I am working with SRM 5.0 in classic scenario.
1) I have defined No. ranges for SC and follow-on documents in SPRO. No. range PO is defined for backend (classic) POs. (Checkbox -External is not marked)
PO - From 3005000000  to 3008000000
2) I have assigned this no. range PO to document type 'EC' (Pur Order) as external no. range
3) No. range PO is also defined at R/3 backend for Purchase Orders (checkbox 'External' not marked)
PO - From 3004000000 to 3009999999
4) This no. range is assigned to doc. type EC as Internal no. range in R/3 backend
Now, when I am creating a SC in SRM and ordering it, it is causing an error in creation.
I see the following description in Admin login:
Shopping cart 6500005899 (PO 3005000532): BAPI 001 No instance of object type PurchaseOrder has been created. External reference: 
PO no. 3005000532 is picked from no. range PO defined in SRM.
But, in SC screen, I do not see any follow-on documents.
When I check BBP_PD, I find following data:
BE_OBJECT_TYPE    ->  BUS2012         -> Follow on Document Object Type in backend system
BE_OBJECT_ID      -> 3005000535       -> Follow on Document Object ID in backend
(However, this no. belongs to no. range PO defined in SRM. At the backend, the PO no. range starts from 3004000000 to 3009999999)
BE_INFO_REC    -> 5300002566
Also, I can see two lines highlighted in Red under Stats:
                       Status                            Description                 Inactive
HEADER          I1015                         Awaiting Approval                X
0000000001      I1111                    Item in Transfer Process           X
My doubt is that ,
a) Why system is picking PO# from SRM no. range (3005000535) and showing it as backend object ID?
b) When system is able to fetch the Info record information from backend, why the PO is not getting generated at the backend?
Why there is an error in transmission of PO?
Please help.
thanks

plz see Peter instructions in this thread
SC: Error in transmission BAPI 001
regards
Muthu

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