Odoo Inventory Location and Types

Locations

The Location in the warehouse is where we keep the goods. It might be a section of the warehouse. A location can only be linked to one warehouse, and it is not feasible to link one location to multiple warehouses. The location can either be physical or virtual. To store actual products, we use physical locations, and to display losses and damages virtually, we use virtual locations.

If you are using the software for the first time, you must make some adjustments to the configuration settings in order to manage the locations and location types.

Configuration

To activate locations, go to Settings and enable Storage Locations. Then, click Save.

By activating this, we can also set put away rules. We may move to the Configuration menu and choose Locations after saving the modifications.

A list of locations will be listed when we open Locations. Given that the filter Internal is present, which means, these are the company’s internal locations. By removing the filter, we can view all the locations.

Here you are able to find different locations like physical locations, Rental locations, virtual locations, etc.

Location Types
There are three types of locations in inventory:

Physical Location
The Physical Locations are internal locations found inside the company’s own warehouses. The short name given for Internal Location is WH which represents Warehouse. Loading and Unloading of the materials takes place through internal locations.

Partner location
Partner Location is the location of a customer or vendor. These locations would be outside of your warehouse, and their owner would be either the customer or the vendor.

Virtual Locations
The Virtual Locations are locations that do not exist.  It is used to represent a warehouse that exists only virtually. This form of warehouse is utilized to show product movement or to trace the product’s history. They are useful for keeping track of missing goods and marking inventory loss.

Creating a New Location

To create a new location;
In Inventory, Go to Configuration → Warehouse Management → Locations Click on Create

Location Name
Name of the location can be given here.

Parent Location
It is the main location that already exists.

Location Type
The location type includes Internal Location, View, Vendor Location, Customer Location, Inventory Loss, Production, Transit Location.

Vendor Location
It is the location which represents where the vendors originally obtained the goods. It is basically a physical location where a vendor conducts business.

View
View is always a parent location. It is usually advised to maintain the parent location set to be the view location when there is a hierarchy of locations. It cannot be used to directly store the products.

Internal Location
It is the location which is available internally in our stock. We can have multiple locations where we can keep our stock. 

Customer Location
It is the location of customers where actually we are delivering the goods from our stock. This is also a virtual location which we just imagine to use when we are selling the goods.

Inventory Loss
It is the location where items that have been lost or scrapped are kept. Inventory loss is represented by virtual locations.

Production
It is the location where the goods are consumed for manufacturing or for any other purposes. The finished goods are created utilizing materials at this location. 

Transit Location
It is the virtual location that displays stock transfers between various warehouses or businesses we operate.

Company
Company name can be provided.

Is it a scrap location?
It can be activated if scrap or broken goods are used to store at the location.

Is a Return Location?
It can be enabled if the location is utilized to store client returned items.

Barcode
Barcode management is a feature that aids in product tracking.

The remaining details can be entered and Save the changes. Now a new location is created. Using the same process, we are able to create multiple locations. The different location management aids the company in organizing all processes in a methodical manner.