When you tick both picking requirements and registration requirements in your item model group setup, application applies these requirements to purchase orders and sales orders, all fine. However, registration is forced for transfer orders while picking is not forced. You can ship transfer orders without updating transactions as picked, however you can not receive shipped items without updating transactions as registered. If registration was not for transfer orders, we could have used this functionality in one of our projects. Separating these requirements as transfer order and non-transfer order would really help in future implementations.