Inventory Status Transition Rules are designed primarily to control the inventory visibility to the Order Management system. They can be used during inbound putaway and during replenishment from overflow zones to bulk / active zones to control what inventory is visible to the order management system for scheduling.
While moving product between zones that are used for outbound picking, it is not possible to limit the visibility of one versus the other, because inventory within all zones used for outbound picking must be available for scheduling. Hence, the inventory status transition rules should not be setup between bulk zone to active zone in situations where bulk picks are possible directly from bulk zones. However, they can be used in movement of product from overflow zones to bulk / active zones where product is not directly picked for the outbound process from the overflow zones.
Inventory Status Transition Rules can be specified at a zone level to convert the Inventory status associated with inventory being moved into the zone appropriately.
For example, inventory being moved into the QC zone is converted to 'Quality Held' from all other inventory statuses.