We turn on pick pack and ship, is there a way to not use a this function when creating the fulfillment from a transfer order? Would this be a like a accounting preference or would need scripts or workflow

It would need script or workflow, no preference to make the Fulfillment go straight to Shipped when is being created from a TO as far as I'm aware...

Yes you can use a workflow to set the status to shipped https://www.mavencloud.tech/blogs/post/approve-and-ship-orders-using-workflows

Thanks guys!