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How to define stockkeeping units in Business Central?

In Business Central, I can define different locations to work on.

This is what happens in the video

A location is typically a geographically defined spot where I store my items.

And defining different location has two different purposes.

In the location list, I can see the location that I have set up.

And one of the purposes for defining a specific location is that I want to plan specifically on that location with different planning parameters, and the ability to see item availability on that location compared to other locations.

Another purpose is if I want to manage the costing on the specific location.

So in this video, I will give you examples of those two purposes.

Planning per location could be done defining a stock keeping unit card.

So, I will go into the stock keeping units (SKU).

And the SKU is basically an item defined on a specific location.

So, if I search for one item here, and it’s only defined on location Simple1, as a stock keeping unit, I will try to create the same item defined on location Simple2.

So, if I define my item number and my location code, which will be Simple2, I can now define specifically for that item being handled on location Simple2 all kinds of parameters.

Maybe in this case, I don’t want to reorder it as an order policy, but maybe as a fixed reorder quantity with reorder point and safety stock on this specific location.

I can set it up here.

So now on this stock keeping unit it deferred from my normal item, and the other stock keeping unit for that item.

So, going back to the list, I can see, I have two SKUs, And the other thing is that I can define costing per location.

So, if I go into the inventory posting setup in here, I can see that, per location, I have defined a location code and inventory posting group code, and it reflects in all different kind of accounts, that I want my inventory to be reflected on.

So, I can use the location to control the costing as well, to see the inventory value on all different locations.