Location = Mandatory would be the first thought. You can (should) force the system to require a Location Code on all transactions. It could also be for reporting purposes where you want to see transactions based on the branch that sold the product. It could also come down to costing if using SKUs with different associated costs/prices.
To the ledger (quantity on hand) it shouldn't matter since the Purchase Order will have the same Location as the Sales Order, causing the transactions to zero in the ledger.
Best Regards,
Ben Baxter
Accent Software, Inc
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