configurator Transfer order between companies

We are working with Configurator 8.9

We have created a transfer order between two companies. The intent is that the item will either be built and transferred, or transferred from stock. Once the ship confirmation occurs, I would expect that the purchase order would allow the item to be recieved. Instead, I get the message below. does this mean that the configuration must be created prior to receiving the transfer? If so, why is the transfer order not doing this?

Configuration must be selected

CAUSE: You are attempting to adjust from zero on a configured item
without selecting a configuration.
RESOLUTION: Either blank out the location and select from an existing
location or select a configuration from history for a new
location.

we have just started looking at use of transfer orders for configured items, and have similar questions. our initial testing pointed to a process like:
* enter transfer order, configuring item
* process the work orders thru to completion
* ship confirm the item
* receive the item into the branch
* enter a sales order for the item selecting from history, removes need for any manufacturing

we haven't proved this process to the end yet
questions/issues we have are:
? OT cost is not updated when ST cost is updated by R31410
? how are cost and price calculated at branch end