Hi Girish,
Thanks for the update!
The mentioned message VL412 'material does not exist in storage
location' does normally come up if the check for the storage location
is active and no material master record for this storage location
exists for the used material (table MARD).
If the 'check storage location' is not active for the used item
category no message should come up. You can deactivate the check in
the customizing of the item categories: transaction '0VLP'.
BR,
Enrique