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Expand Up @@ -53,59 +53,57 @@ page, only internal locations are displayed.
To view the seven location types in Odoo, select any location, and in the :guilabel:`Location Type`
field, there are:

- :guilabel:`Vendor Location`: defines an area where products purchased from vendors originate.
Items here are **not** in stock.
- :guilabel:`Vendor`: defines an area where products purchased from vendors originate. Items here
are **not** in stock.

- :guilabel:`View`: used to organize and structure the warehouse hierarchy. For example, the view
location `WH` (short for warehouse) groups all internal locations, such as `Stock`, receiving
docks, quality checkpoints, and packing areas to show they all belong to the same warehouse.
- :guilabel:`Virtual`: used to organize and structure the warehouse hierarchy. For example, the
virtual location `WH` (short for warehouse) groups all internal locations, such as `Stock`,
receiving docks, quality checkpoints, and packing areas to show they all belong to the same
warehouse.

.. important::
View locations should **not** contain products, but it is possible to move them there.
Virtual locations should **not** contain products, but it is possible to move them there.

- :guilabel:`Internal Location`: storage locations within the warehouse. Items stored in these
locations are accounted for in :doc:`inventory valuation <../inventory_valuation/cheat_sheet>`.
- :guilabel:`Internal`: storage locations within the warehouse. Items stored in these locations are
accounted for in :doc:`inventory valuation <../inventory_valuation/cheat_sheet>`.

- :guilabel:`Customer Location`: where sold products are tracked; items here are no longer in stock.
- :guilabel:`Customer`: where sold products are tracked; items here are no longer in stock.

- :guilabel:`Inventory Loss`: counterpart location to consume missing items or create stock,
accounting for discrepancies.

In Odoo, examples of inventory loss locations are *Inventory Adjustment*, used to account for
In Odoo, examples of inventory loss locations are *Inventory adjustment*, used to account for
discrepancies during an inventory count, and *Scrap*, which is where damaged goods are sent to
account for inventory losses.

.. example::
`Virtual Locations/Inventory Adjustment` is a location with the :guilabel:`Inventory Loss`
type. The database shows `65` units in `WH/Stock`, but an inventory check reveals `60`. To
correct the quantity, five units are moved from `WH/Stock` to `Virtual Locations/Inventory
Adjustment`.
`Inventory adjustment` is a location with the :guilabel:`Inventory Loss` type. The database
shows `8` units in `WH/Stock`, but an inventory check reveals `4`. To correct the quantity,
four units are moved from `WH/Stock` to `Inventory adjustment`.

.. image:: inventory_management/inventory-loss.png
:align: center
:alt: Product ends up in Virtual Locations/Inventory Adjustment.
:alt: Product ends up in Inventory adjustment.

- :guilabel:`Production`: where raw materials are consumed, and :doc:`manufactured products
<../../manufacturing>` are created.

- :guilabel:`Transit Location`: used for inter-company or inter-warehouse operations to track
products shipped between different addresses, such as :ref:`Physical Locations/Inter-warehouse
- :guilabel:`Transit`: used for inter-company or inter-warehouse operations to track products
shipped between different addresses, such as :ref:`Physical Locations/Inter-warehouse
transit <inventory/warehouses_storage/interwarehouse-transit>`.

.. image:: inventory_management/locations.png
:align: center
:alt: List of locations in Odoo.

.. note::
In Odoo, location types are color-coded:
- **Red**: internal locations
- **Blue**: view locations
- **Black**: external locations (including inventory loss, vendor, and customer locations).
- **Blue**: virtual locations
- **Black**: internal and external locations (including inventory loss, vendor, and customer
locations).

View locations in Odoo
----------------------

Odoo databases include preconfigured view locations to organize the hierarchy of locations. These
Odoo databases include preconfigured virtual locations to organize the hierarchy of locations. These
provide helpful context, and distinguish between internal and external locations.

- *Physical locations* group internal locations—such as secondary warehouses and subcontractor
Expand All @@ -118,7 +116,7 @@ provide helpful context, and distinguish between internal and external locations
.. example::
When moving products in warehouses `WH` and `WH2`, the items are not in either warehouse, but
still belong to the company. While in transit, they are placed in the `Inter-warehouse transit`
location, a :guilabel:`Transit Location` type.
location, a :guilabel:`Transit` type.

This location is under the view location, `Physical Locations`, indicating that
`Inter-warehouse transit` is outside of a warehouse, but still part of the company. Doing so
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