Incorrect location data on transactions can lead to significant operational challenges, including inventory discrepancies, inaccurate costing, and fulfillment errors. By properly configuring location defaults in NetSuite, you can minimize manual entry errors and ensure that transactions are automatically assigned to the correct warehouse or facility. This guide provides a fact-checked overview of how NetSuite determines the location on a transaction.

The Location Default Hierarchy

When a new transaction is created, NetSuite follows a specific, multi-layered hierarchy to determine which location to apply. It checks for a default location in the following order, and the first match it finds is the one it will use:

1. Item Record: The Preferred Stock Location set on the item record itself.

2. Employee/User Record: The Default Location set on the employee record of the user creating the transaction.

3. Subsidiary Record: The Default Location set on the subsidiary record associated with the transaction.

It is critical to understand this hierarchy to troubleshoot why a particular location is or is not appearing on a transaction.

How to Configure Each Default Level

1. Item-Level Default (Highest Priority)

Use this when a specific item is almost always fulfilled from the same location.

1. Navigate to the item record (Lists > Accounting > Items).

2. On the Purchasing/Inventory subtab, you will find a Preferred Stock Location field.

3. Set this to the desired default location for that specific item.

2. User-Level Default

This is ideal for companies where employees are associated with a specific physical location, like a regional warehouse or office.

1. Navigate to the employee record (Lists > Employees > Employees).

2. On the Human Resources subtab, set the Default Location.

3. Alternatively, individual users can set their own default by navigating to Home > Set Preferences and setting the Location under the Defaults section.

3. Subsidiary-Level Default (Lowest Priority)

This serves as a general fallback if no other defaults are set.

1. Navigate to Setup > Company > Subsidiaries.

2. Edit the relevant subsidiary record.

3. On the main subtab, set the Default Location.

   
   

Header vs. Line-Level Locations

• Header Location: The Location field in the main header of a transaction acts as a default for all lines added to that transaction.

• Line Location: Each individual line item on a transaction can have its own location, overriding the header. This is essential for fulfilling a single order from multiple warehouses.

  
  

Form-Level Controls

You can also use form customization to enforce location-related business rules:

• Make Location Mandatory: On your custom transaction forms, you can check the Mandatory box for the Location field to ensure users can never save a transaction without selecting one.

• Hide Location: For single-location businesses, you can hide the Location field entirely to simplify the user interface.

  
  

Common Scenarios and Troubleshooting

• Problem: The wrong location is defaulting on a transaction line.

• Cause: Check the hierarchy. The item record's Preferred Stock Location is likely overriding the user's or subsidiary's default.

• Problem: A user cannot select a specific location.

• Cause: The user's role or employee record may not have access to that location. Check the Location Restrictions on the employee record.

• Problem: The location field is missing entirely.

• Cause: The field has likely been hidden on the custom form you are using. An administrator will need to edit the form to make it visible.

By strategically setting defaults at the appropriate level, you can significantly improve the accuracy and efficiency of your inventory management processes.