I went into Maintain Database, BKICLOC and for the item number, our default location was left blank when it was first entered, even though it was still blank in BKICLOC file I cleared it out anyway just to be safe.  Then I went into IN-L-B and tried to assign it the correct location - funny thing - it told me a location already existed for it...hmmmm.  So I went to recalculate book value and it worked.  Then I opened a WO and that worked so.