Inventory – Locations

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BOM - Inventory - Locations
BOM – Inventory – Locations

In order to manage your INVENTORY ITEMS, you have to have at least one INVENTORY LOCATION into which you put your INVENTORY ITEMS. This could be a physical, virtual or accounting place. How you set this up depends on your business model.

You could have a nice & simple single LOCATION.

Multiple LOCATIONS could be the same physical place, but you want to keep your INVENTORY ITEMS separated for management purposes.

You can also use INVENTORY LOCATIONS for PRODUCTION SHOPS and STOCK TRANSFERS.

Your POS APP will use an INVENTORY LOCATION as a default.

In a multi store setup, you could have a warehouse location and each store has its own location.

  • Each POS/WEB/MOB APP is linked to a STORE.
  • But a  STORE doesn’t have to have a POS/WEB/MOB APP.
  • Each STORE is linked to an INVENTORY LOCATION.
  • Every INVENTORY LOCATION is available to every STORE.
  • Every INVENTORY ITEM is available to every INVENTORY LOCATION.
  • However, an INVENTORY ITEM will NOT appear in an INVENTORY LOCATION unless it is transacted in some way ( ie produced, transferred, purchased, sold, written off, etc )

Does an image of this relationship help ?

BOM - Inventory - Relationship
BOM – Inventory – Relationship

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About the author: Tim Atkinson