Automatic batch pick up required during delivery creation w.r.t Subcontracting PO from ME2O

Hello experts,

For our SC PO cycle, I wish to set up auto batch determination, so that during delivery creation from ME2O, the batches are automatically entered in the delivery created.

My custom delivery type has default order type as 'DL', in transaction OVLK.

I have assigned the sales org/Dc/Div combination to sales doc type DL and a search procedure is also assigned.

I am yet to check the "Activate automatic batch determination in SD" for the custom item category being used in my delivery type but will soon do that.

Can some one please guide me regarding the condition type configurations required here:

• I would like to fetch up batches for my material in the given plant.
• Should I use a condition table for batch determination in IM or SD? Do I have to create a condition master record from VCH1?

After all, delivery is an SD element but the delivery here is created w.r.t a Subcontracting Purchase order (item category L), so doubtful.