How to delete a line with non-inventory part from Material Requisition?

Since the supply code is purchase order for the line, there must be a purchase requisition/purchase order created. You can rmb on the concerned material requisition line and select ‘purchase information’. From ‘order’ field you can copy the purchase requisition number. Then open the purchase requisition screen and search for the record. There you can delete the PR line. And then come back to the material requisition and then you will be able to delete the line. 

If a purchase order is also created from the purchase requisition you can cancel the purchase order first. I think the PO is not received yet since the qty to be received is 1 in the material requisition line. Choose to re-open the purchase requisition line when cancelling the PO. And then you can delete that PR line and delete the material requisition line.

If it is not allowed still, you should obtain the patch fix bug 114861. This had been released after the release of App8 service pack 2. It seems before that patch fix, deleting the PR line was not possible. Since App8 is out of the support phase, the eligibility of the patch needs to be checked. If so I recommend you to send us a support case so we can check.

@Manoj Balasooriya 

HQ IT is in holiday. I have no right to check server. This is screeenshot from my client. Is it possible to know if fix bug 114861 is installed? 

Thanks!