Does anyone use Transfer orders? We are thinking about using transfer orders for our products shipped from our warehouse and sending it to another warehouse. How do you close a transfer order if it never receives in full? Example we sent 4, we know we sent 4, but the other warehouse only receives 3. How do we avoid that lone item sitting in in transit?

This is definitely a pain. If it's in the same period, we delete the fulfillment and re-issue with the correct quantity. Though, probably not best practice and your auditor may not "love" it. If it's outside the period, we receive in full and create and inventory adjustment out for the quantity not actually received.