Fulfillment Partner API Block From Marking Order Fulfilled

My store is having an issue with one of my 3rd party fulfillment partners. Their API can pull orders but they cannot push tracking or close the order in Shopify. Shopify is telling their API that there is nothing to fulfill.

I have two fulfillment locations and they have a different assortment. So some skus cannot be fulfilled from only one location.

Now I am wondering if this is a location priority issue?? Any one else deal with this? Also can I have location prioritization by sku or overcome this some how?