Not able to Do Transfer Order - pls help

Hi All, I am not able to do a TO for an TR for an production order (319 mtype).

When i try to do the TO it says "Storage type does not allow negative stock figures", even though stock of 2 qty is available.

The storage type in which the material is available is not a interim stype.

When i analysed what i found was when the requirement created from Production, a reservation for this material was also created, will this cause this issue, how to supply matieral to this TR, please help me ..

Thanks a lot