I have an item in multiple locations. I set up the locations, and do my item journals/PO’s to populate the different locations with my one item.
There is also the option to set up different SKU’s for each location. I would still do my item jouranl/PO to populate the different locations with my one item.
What would be the main reason for using SKU’s (location SKU’s) as opposed to not using SKU’s ?
SKU or Stock Keeping Units are used to control inventory levels/planning by location. You can setup parameters per location which will generate transfer orders/purchase orders through the reconcilation worksheet if required (depending on setup). This requires more setup but gives you more control.
In addition to this costing also gets some role to play, specifically standard. We can define three different standard cost for an item if it has three SKUs defined for it i.e. one standard cost per SKU.
One more thing actually, the requisition worksheet only works with SKU’s correct ? I like the idea of using the requisition worksheet to create PO’s to replenish my stock, but this only works if I use SKU’s correct ?