Hi Barb,
If the problem does not occur for new items, and the problem goes away when you remove a status and then re-apply it, I would conclude that there is something incorrectly stored in the data for those items, rather than there being a problem with the program in being able to save the change. Especially if when editing a lcoation, you see a status of Yes for an item being allowed when in another place a status of On Demand is visible.
For example, Purchase Orders for Adagio has been known to not set these values correctly if the item was created from there rather than from Inventory or Order Entry.
You probably will need to get your Adagio consultant involved, if there is a problem with your data.
If you wanted to investigate this further, and you use GridView, create a new inquiry on the Inventory - Item Locations Master table. For an item to be allowed at a location, a record needs to exist for that location, and the field value 'Carried in Loc?' needs to be True. Perhaps in your case the item/location record exists but the Carried value is False.
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Regards,
Softrak Tech Support