Hi Arvind,
As per your scenario, there will be different quants even though there is one batch.
If two quants are there , TO will have two line items for single delivery line item.
In my view system should update the two line items in the delivery back with picking quantities for each batch.
Create the scenario -- One Delivery line item - quantity 5- Create one TO for Delivery by selecting Two same batch numbers with quantity 2 & 3 - Try to confirm the TO with debug mode & get the reason why the storage location is not getting updated back into the delivery while TO confirmation.
Hope you will get the solution. Confirm your observation, so that further approach may be decided.
Regards,
MG