Locations provide the physical infrastructure for inventory control. Stock quantities are tracked by location, which facilitates job issues, order picking, and stock counts.
Create a location to represent each physical location
In the Locations screen, create a location to represent each physical location, which can be a rack, bin, shelf, receiving area, or staging area. User-defined location IDs typically are structured in three segments, separated by dashes, as follows:
Warehouse – Area/Aisle – Bin/Shelf/Rack Number
Each item is assigned a default receipt and primary location
On the Locations tab in the Stock Items screen, each stock item is assigned a default Receipt Location and Primary Location. Often the two locations are one and the same, but the item can be received first to a receiving location and then transferred to its primary location.
Using a receiving location
Instead of receiving purchased items directly to their primary locations, it can be useful to receive all or selected items to a receiving location. This enables items to be inspected, unpackaged, and labeled as needed. Afterwards, the Stock Transfer screen is used to transfer stock from the receiving location to each item’s primary location.
Designate the receiving location as Transitory
When you create the receiving location, select the Transitory checkbox. This identifies the location as a transitory location where stock is stored on a temporary basis to perform a process or transfer. In the Order Picking and Job Issues screens, stock quantities in transitory locations are displayed for reference, but are not available for picking or issuing.
Using an inspection location
You can also consider setting up an inspection location for manufactured items that are subject to an inspection process before they are transferred to a storage or shipping location. As with a receiving location, flag the inspection location as Transitory so that stock cannot be issued or picked from the inspection location.
Additional locations can be specified for each item
On the Locations tab in the Stock Items screen, you can also specify additional allowable locations for each item. You have the option of specifying individual locations or you can assign the item to a Location Group, which is a pre-defined set of locations that apply to a group of items. Location groups are created and maintained in the Inventory – Setup – Location Groups screen.
Using location groups
How would a location group be used? For example, all your sheet metal items might be allowed storage in a particular rack area. Instead of assigning the allowable rack locations to each sheet metal item, you can create a location group to represent your sheet metal items and assign allowable locations to it. Any item that is assigned to the sheet metal location group is indirectly assigned to all its allowable locations.
Establish defaults for new stock item creation
In the Inventory Defaults screen, you specify a Receipt Location and Primary Location that get assigned by default to new stock items.
If you always receive items to a receiving location first, that location can be specified as the default receipt location. Otherwise, consider using an “ASSIGN” location as the default receipt and primary location.
Using an “ASSIGN” location
An “ASSIGN” location can be assigned by default to new items, which enables you to create the item record and assign actual receipt and primary locations at a later time. An “ASSIGN” location is not a physical location. It is a temporary location that indicates that the item does not yet have location assignments.
To use an “ASSIGN” location, create a location with an item ID of ‘ASSIGN’ and designate it as the default receipt location (if you are not using a receiving location) and default primary location in Inventory Defaults.
Whenever an item is encountered with an ‘ASSIGN’ location, it is your signal that the item needs to be assigned to an actual physical location.
Designate the ‘ASSIGN’ location as Transitory
When you create the ‘ASSIGN’ location, select the Transitory checkbox. This identifies the location as a transitory location where stock is stored on a temporary basis to perform a process or transfer. In the Order Picking and Job Issues screens, stock quantities in transitory locations are displayed for reference, but are not available for picking or issuing.
Use a “FIND” location for items without permanent locations
A “FIND” location can be used with items that do not have permanent locations. These might be items that are procured or manufactured only on occasion and can be stored in any allowable location within a general area. To do this, create a location with a location ID of ‘FIND’. Where applicable, assign this location as the item’s default Receipt Location and Primary Location. When you encounter the ‘FIND” location on a receiving screen, it is your signal to find an actual location.
Designate the ‘FIND’ location as Transitory
When you create the ‘FIND’ location, select the Transitory checkbox. This identifies the location as a transitory location where stock is stored on a temporary basis to perform a process or transfer. In the Order Picking and Job Issues screens, stock quantities in transitory locations are displayed for reference, but are not available for picking or issuing.
Create work center locations for receiving made to order subassemblies
When made to order subassembly jobs are completed, job outputs must be received to a location, even when items are issued immediately to higher-level jobs. Therefore, you should create locations to represent each work center that has a receiving staging area and you can designate such work centers as the default receipt location against items that are always received directly to specific work centers.
Create a shipping location for to order sell items
Sell items made or purchased to order can be received directly to a shipping location. You should therefore create a shipping location, which represents a general staging area for pending shipments. Designate it as the default receipt location against any item that is received directly to shipping.
Use a transit location if needed
If you transfer stock to remote locations and there is significant transfer time involved, you can create one or more “transit” locations to track stock in route. The Stock Transfer screen is used to transfer stock quantities from the source locations to the transit location, which may be your own truck or a commercial shipper. When the items arrive at the target destination, the Stock Transfer screen is used to transfer stock quantities from the transit location to final locations.
Designate the transit location as Transitory
When you create the transit location, select the Transitory checkbox. This identifies the location as a transitory location where stock is stored on a temporary basis to perform a process or transfer. In the Order Picking and Job Issues screens, stock quantities in transitory locations are displayed for reference, but are not available for picking or issuing.
Create service vehicle locations if needed
You may have service vehicles used by field technicians or salespeople that have a small parts inventory. Each such vehicle can be given its own location, so that you can track and replenish field inventories. Service vehicle locations are not assigned as default locations because they are always secondary locations rather than primary locations. The Stock Transfer screen will be used periodically to replenish service vehicle stock.
Do not avoid using actual locations
Do not avoid locations by using a single dummy location that has no meaning. Use multiple locations so that stock quantities are tracked against actual locations. Using multiple locations reduces errors, increases inventory accuracy, and saves time by facilitating job issuing, order picking, and stock counts.
