Clarification on "Include Transfer Orders" in Demand Plan Options

We are seeking confirmation regarding the function of the "include transfer orders" checkbox within the Demand Plan options.

Our Current Understanding:

We understand that enabling this checkbox includes transfer order demand in the forecasts generated by the Demand Management module. However, we have also been informed that this transfer order demand is not passed down to the Replenishment Planning module for use in planned order suggestions.

Business Context & Issue:

Our company has implemented only the Demand Management and Replenishment Planning modules, not Supply Planning. This was initially feasible as our manufacturing was limited to repackaging using very simple BOMs and work definitions.