Defining an inventory location

An inventory location is a physical place where you store inventory. The place can be a region, a city, a building, a floor, an accounting unit, or any other area where you store inventory. You can also define a location as a place where you store a particular classification of inventory, such as spare parts, office supplies, or consignment inventory.

See Why do I set up offsite locations and production facilities? for more details.

This procedure explains how to define inventory locations.

Define inventory locations

  1. Access Location (IC02.1).
  2. Select the Inventory Control company and location.
  3. To add or maintain address information for the inventory location, select the Address tab. Specify this information:
    Address 1-5

    Type the address information for the location.

    Contact

    Type the name of the contact person at the location.

    Attributes button

    Click the Attributes button to transfer to IC Location Attributes (IC02.3). Use this form to enter attribute values for a location. For information, see the Inventory Control User Guide.

  4. To add or maintain information about the location to which vendors ship purchase orders, select the PO Ship To tab. Specify this information:
    PO Ship To Name

    Type the name to print on purchase orders for shipping.

    Address 1-5

    Type the address information to print on purchase orders for shipping.

  5. To enter vendor return defaulting accounting information, select the Returns and Inspection tab. Specify this information:
    Returns Suspense

    Select the accounting unit, and account to use when inventory items are returned to vendors.

    Inspection Hold

    Select the accounting unit, and account to use when items are being inspected.

    Freight

    Select the accounting unit, and account to use for freight credit allowed by the vendor.

    Handling

    Select the accounting unit, and account to use for returns for handling charges by the vendor.

    Scrap

    Select the accounting unit, and account to use when items rejected upon inspection are scrapped.

  6. To add information such as PO code, allocation, and requisition options, select the Miscellaneous tab. Specify this information:
    Default PO Code

    Select the purchase order code that defaults to a purchase order from the location.

    Default PO Dropship Flag

    Select whether to set the drop ship field on a purchase order line when this location is used as the ship-to location on a purchase order.

    Allocation Purpose

    Select how bin-tracked items are allocated by the Warehouse application (consolidate bins or speed picking).

    Retail Location Type

    Select a retail location type (retail store, retail warehouse, or non-retail location).

  7. To define a production facility and related information, select the Production Order Work Order tab. Specify this information:
    Location Type

    Select the type of inventory location.

    N = Not a Work Order location

    O = Offsite location

    P = Producing location

    Allow Unallocated In-Production

    Select whether unallocated items determine restrictions on production status:

    • In Production Unrestricted by Allocation - select if you do not want unallocated components to affect the production status.

    • In Production Restricted by Allocation - select if you want to restrict production because unallocated components exist in inventory.

    • No - But Override Allowed - select if you want to restrict production by default, but retain an override capability.

    Note: Infor Process Automation users have a service available that notifies the processing manager that a work order was placed into production without allocating all the components (if you select No but Override Allowed or In Production Unrestricted by Allocation in this field). For information, see the LPA Services for Infor Reference Guide.
    Waste Account

    Select the default waste account to components added to finished goods or to work orders when no account is selected.

    Variance Account

    Select the finished good variance account. This value is used to post variances in finished good cost when there is a difference between the cost on an original work order and the cost returned from inventory for a reverse work order.

    When the quantity of goods produced does not match the components used, the difference between the component costs is posted to the variance account.

    If you are a standard cost inventory company and your actual costs of producing a finished good do not match Inventory Control's known standard cost, the difference is posted to the variance account.

    Work in Process Account

    Select the work-in-process account. This value is used to post component costs of a work order to a WIP account when components are pulled out of inventory during feedback in the Production Order application.

    Demand Source

    Select the source of demand that is used in production scheduling in the Production Order application. The options are:

    • Document Demand

    • Forecast Demand

    • Document and Forecast Demand

    Calendar

    Type the name of the calendar used in the production scheduling process for work orders.

    Schedule Status

    Select the status you want work orders to be in when scheduling production using Production Schedule (WO20.1). The options are:

    • Unreleased

    • Released

    • Exploded

    • In Production

      Note: The status defaults to Production Schedule (WO20.1) when using the Build form action.
    Capacity

    Type the default capacity if you want to limit the quantity of finished goods that can be produced at this production facility.

    Note: If a value is typed in this field, it defaults to Finished Goods (IC62.1) as you add the finished good.
    Schedule Period

    Schedule increment is used with schedule frequency to indicate the length of a scheduling period for work orders. The increment is the number of days, weeks, or months in a period.

    Note: If you type a value in this field, it defaults to Finished Goods (IC62.1) as you add the finished good.
    Use Income Statement Accounts

    Select whether you are using income statement accounts in the Production Order application.

    Substitute Locations button

    Click this button to add substitute inventory locations. The application transfers you to Substitute Locations (IC02.2).

  8. Select the Add form action.

Related reports and inquiries

To Use
List locations Location Listing (IC202)