Hi Raja,
are you testing with old order or with new order???...Whenever you change configuration or master data, you need to test with newly created orders...Here one more thing you have put norelease of order if parts are missing.. if the material shortage is there then system will not allow release of the order ..but you are able to release the order and do the confirmation..means there is no material shortage..have you done the material availability check in the order ???...
Do the testing as follows....
First create a new order after making all the changes in configuration and master data if any...
Carry out material availability check in the order...if shortage is there it should not allow the release of the order..
check and revert..
Thanks
Kumar