Location code in purchase header and purchase line

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Posted on by Chandra Moulee

HI All,

In both Purchase header and purchase line the location code is present.

In Purchase header, this location code (Field no - 28) is auto filled as per the location field value from Vendor card, which is changeable. and In case of purchase line this location code can be chosen as per the receive requirement.

My question is,

The system allows to have different location in header and lines, and when we post the PO, the location code in the item ledger entries is updated as per the location input in purchase Lines.

A) So what is the purpose of having the location code in purchase header and pls inform its influence.

B) In practical will the user assign lines with different location (Example below pic) and is it advisable ?

Posted purchase Invoice

Item ledger entries

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Chandra Moulee on at

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RE: Location code in purchase header and purchase line

H,

Thanks for your response and I understood that those Tax area , Tax groups, are used in American BC environment and can be set tax on location based.

I appreciate your clarification.
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MahGah 15,433 on at

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RE: Location code in purchase header and purchase line

Hi

I was mainly talking about USA.

Combination of Item + Location determine the tax. In Item card you define if item is taxable or not. Then in Location (go to Locations and open one Location) you can select Tax Area Code. Now when in Line you select item then location these two determine if tax required (item) and for how much (Tax Area Code of location).
Chandra Moulee on at

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RE: Location code in purchase header and purchase line

HI Mahgah,

Thanks for your response and I appreciate your detailed clarification. This helped to understood partially.

In your explanation, mentioned about "General tax of PO" determined in header and "change Tax model" determined in lines.

As for my understanding ,The location plays key role in inventory posting setup as below.

And VAT % determined in VAT posting setup assigned to combination of "VAT bus posting group and VAT prod posting group" present in Item card , which is determines VAT calculation in PO.

Can You explain what is role of Location in determining the Tax in PO and if possible pls provide me link to study on this Tax determination by location.
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MahGah 15,433 on at

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RE: Location code in purchase header and purchase line

Hi

The line and header locations have different functions.

Header location: determine the shipping address in PO and also based on that it determine the general tax of PO.

Line Location: determine part adds to which location. In addition, it could change tax model in each line based on combination.

For example in one physical location you may have 3 different BC locations. Then you want all parts ship to location1 but at the time of receiving it goes to different location. From header you can select Location 1 but for lines you can select different locations. In below example you can see PO address is location Green but item will be received in Location Red.

The practice you used is acceptable and we do it all the time. As far as your vendor ship the items to correct locations.
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Vaishnavi J 3,056 on at

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RE: Location code in purchase header and purchase line

Hi,

When you fill the location code in Purchase Header that means all your line items will be received using location present in Purchase Header. Since it ask you do you want to update the location code in lines as well and if you select yes the location code gets autofill in lines based on Header.

But in case if you have multiple items that you are buying but you want to receive in different locations then you fill respectively and based on location code the inventory value will be increased.

If my answer was helpful to you, please verify it so that other users know it worked. Thank you very much