Transferring stock from a Storeroom warehouse to the distributor’s warehouse
You must process inventory that is returned to a Storeroom warehouse as a return. To transfer the product back to the distributor’s warehouse, you must first return it to the Storeroom warehouse as a distributor-owned product. You then can create a warehouse transfer in Distribution SX.e to transfer it from the Storeroom to the distributor’s warehouse.
See Entering a return and Transferring stock to a Storeroom warehouse.