Error on Pick Confirm of Transfer Order

When doing a pick confirm using P4617 for transfer order we get the error Invalid Next Status Override.

The next status is override is 555 and the current next status on the order is 545.

The order should become 545 - 555. But it throws an error as if the status is not in the activity rule.

Does P4617 update the Purchase order also when the sales order is pick confirmed. Is it throwing an erro because of the purchase order?