Shipping is attempting to transfer a part (IN-L-J) from "default" inventory to a recently created location  and they are receiving an error message. Two other parts have been successfully transferred to the new inventory location. I asked and the parts that transferred successfully were not part of any open/closed sales order
 
The following warning message appears when selecting the "Lot Number" when doing the part transfer:
"Item ILT-2x2-W65 has Open Sales Order (54758) with Lot information allocated for this location.  Please unrelease this order and Try again."
 
The sales order the error is referring to has already been closed and invoiced--I checked the system and the SO was closed and invoiced on 3/21, but the new inventory location was created after that, probably on 3/24 or 3/25. I'm saying it's because the inventory has already been sold/released shipped/gone out that this isn't working, but Sales and Shipping and Finance disagree. Ok, so I'm asking the experts--why isn't this working?
 
And if they need to get some sort of a part transaction to this new location after the fact, is there a way for them to do this?

That worked, thank you! Accounting said they didn't notice an issue when they did the invoice but well, there you go.