Inventory tracking location and ownership levels
An inventory movement outside an inventory tracking level creates or updates an inventory tracking unit, whereas an inventory movement inside an inventory tracking level does not affect the inventory tracking unit.
Example
Location level Country causes inventory movements outside the country to create or update an inventory tracking unit. Inventory movements between warehouses or sites, if the Sites concept is activated, within the country do not affect the inventory tracking unit.
Likewise, ownership level Financial Company causes inventory movements between financial companies to create or update an inventory tracking unit, whereas inventory movements between enterprise units that belong to the same financial company do not affect the inventory tracking unit.
Location and ownership tracking levels combined
The inventory tracking units are affected if an inventory movement is performed outside the location level or the ownership level, or both.
Example
The location level is Site.
The ownership level is Enterprise Unit.
Warehouses A, B, and C belong to site ABC.
Warehouses A and B belong to enterprise unit 1.
Warehouse C belongs to enterprise unit 2.
A transfer between warehouses A and B does not affect the inventory tracking unit, because the transfer is performed within site ABC and thus stays inside location level Site. The transfer also stays within ownership level Enterprise Unit, because both warehouses belong to the same enterprise unit.
A transfer between warehouses A and C results in a consumption from the original inventory tracking unit, and a new inventory tracking receipt into a new inventory tracking unit, even though the transfer is performed within site ABC and thus stays inside location level Site.
This is because the transfer is performed between different enterprise units, that is, outside ownership tracking level Enterprise Unit.