Have not found a solution to the original problem, but as I've learned the problem may not be the solution we were looking for anyways.
Our issue was we wanted to transfer returned product/defective product to a new warehouse location. We assumed it needed to be setup as a warehouse to do a warehouse receipt. We were able however to simply finish the transfer directly in a Transfer Order, and do the entire Receipt and Put-away without needing to do separate steps as in a full warehouse.