Transaction Item Option State field does not filter base on Country selected

User created a transaction item options field of type list/record for Country and State using the standard Country and State list. The State list does not filter based on the Country selected.

Perform the following steps to resolve this problem:

 1. Navigate to Customization > Lists, Records, & Fields > Transaction Item Options.
 
 2. Edit the Country field.
 
 3. Click the Display tab.
 
 4. In the Insert Before field, select State field.
 
 5. Click Save.
 
The State will not filter if the field comes before the Country field.