What is the difference between a distribution address and a delivery address?

Understanding the difference between these two address types is key to managing how items are received and tracked within your organization.

Delivery Address (The "Ship To" Location)

A Delivery Address is the physical location where the supplier should drop off your goods or perform a service.

  • External Use: This address appears on all forms shared with suppliers (Purchase Orders, Requests, etc.).
  • Purpose: It serves as the primary "Ship To" instruction for the vendor.

Distribution Address (The "Internal" Inventory Allocation)

A Distribution Address is used for internal inventory, specifically when items need to be split or "distributed" among various storage areas after they arrive.

The distribution address can be selected when the delivery note is created to assign received goods directly into inventory. 

How to Enable Inventory Distribution

To begin tracking and managing stock across your various locations, follow these three essential configuration steps:

  1. Enable Inventory: Navigate to your Branch Settings and ensure the Inventory module is toggled "Yes".
  1. Define Distribution Addresses: Go to your address list and mark the specific locations (warehouses, storerooms, etc.) as "Distribution Addresses". Only addresses with this tag can hold physical stock.
  2. Identify Stock Items: In your item database, ensure that the relevant products are identified as "Stock Items".

Once these settings are active, every time you record a delivery for a stock item, a new Inventory Distribution section will appear. This allows you to assign exactly how much of the incoming shipment should be allocated to each of your distribution locations.

Was This Helpful?

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Tags: