The dropship360 extension will change how your order statuses progress. dropship360 will use the status concept to workflow the order fulfillment process.
To see how you Stock will be managed go to System > Configuration > Catalog > Click Inventory.
If you have the Manage Stock Option set to Yes, then logicbroker will update your individual Qtys as an aggregate count based on the Qtys setup for each vendor. Remember when entering Qty's for each vendor, they will get updated automatically with the value you enter less the inventory-buffer value you have configured.
For Example: My item below has the following setup for vendor inventory; 96 and 94, if we total that up it equals 190.
As you can see the total under Product Information > Inventory the Qty equals 190.
Given that the Inventory Qty is an aggregate of all your trading partners, you will need to setup your warehouse as a vendor, it can be named "Internal Fulfillment"
When first installing your dropship360 extension to manage your warehouse stock, it is best to first transition your warehouse stock as a vendor inventory property. Follow these instructions for how to do that easily.