PO with different line Locations – what should Header Location be?

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Posted on by Rumeysa Kocabiyik

Hi everyone,

I’m working on Business Central Online v27 and I have a question regarding Purchase Order structure.

In a purchase document, I have two different lines, and each line uses a different Location Code (Location A and Location B). Since BC allows line-level location selection, the document posts correctly.

My question is:

What is the recommended practice for the Location Code on the Purchase Header when the lines use different locations? Should I leave the header Location Code empty, or choose one of the locations?

Additionally:

Could leaving the header empty cause any issue in inventory valuation or cost calculation?
Does the header Location Code affect Item Ledger Entries or costing in any way?

I want to ensure I'm following best practice and avoiding any unintended impact on costing and inventory valuation.

Thanks in advance for your insights!

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Dynamics 365 Business Central

Microsoft Dynamics NAV

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Ben Baxter 6,817 Super User 2026 Season 1 on at

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Since your Purchase Order is generally sent to a Vendor with a single Ship-to Address (comes from the Header) on it, the recommended approach is to have the Line Location match the Header Location; meaning you would have two POs in this scenario.

Ignoring that issue, the Location on the Lines wins in terms of Item Ledger and costing, so your Header Location doesn't impact either of the lines. The Header Location is mainly to auto-populate the Line's Location AND to update the Ship-To Address on the paperwork.

Best Regards,

Ben Baxter

Accent Software Inc

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OussamaSabbouh 10,967 Super User 2026 Season 1 on at

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Hello,

If lines use different locations, leave the header Location Code empty.

Costing, inventory valuation, and Item Ledger Entries use line locations only. Header has no impact.

Regards,

Oussama Sabbouh

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Khushbu Rajvi. 21,573 Super User 2026 Season 1 on at

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Leave the Purchase Header Location Code empty when lines use different locations. Costing, inventory valuation, and Item Ledger Entries are driven only by the line Location Code, so leaving the header blank causes no issues and avoids confusion or wrong defaults on new lines.

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YUN ZHU 97,970 Super User 2026 Season 1 on at

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Hi, hope the following helps as well.

Dynamics 365 Business Central: Define default location for sales or purchase

https://yzhums.com/57738/

Thanks.

ZHU

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