Unable to delete TransferOrder since the corresponding Delivery is deleted

Hi All,

I have a scenerio here,

The Outbound Delivery is created and then the Transfer Order is created but have not confirmed it (Picking is done in the Warehouse ) .They have deleted the Delivery.Now they are trying to cancel the Transfer Order but since the Delivery is deleted the system is not allowing to cancel the TO. The stock is available in the interimn storage type. since there are open TO's the system is not allowing to do the physical inventory,

Please suggest how to deal this situation.

Thanks in advance.

Kiran