Planning is Location dependent, and they can all work together. For example, if you purchase to your "INWARD" Location and sell out of your "FG" Location, there needs to be a SKU at each Location. The INWARD SKU defines the purchasing process, quantity, vendor, timing, etc. The FG SKU defines how product gets from INWARD to FG, which is usually a Transfer Order.
If you Manufacture your Finished Goods, it is possible the output is to FG, while the components are set to INWARD, so your raw material purchasing is to the INWARD location.
I would encourage you to work with your partner on both Locations/Warehousing and the Planning Process. Locations are not used to define a process, but rather a physical building or storage area. Within a Location you could have an "INWARD" or Receiving Bin, which is where product arrives before being moved to Inventory.
Hopefully this helps. If so, please mark it as a Verified Answer to help other forum users.
Best Regards,
Ben Baxter
Accent Software Inc
