Prod. stor. location usage Material master

Dear PP expert
Who can help to explain what meaning for this feild Prod. stor. location in MM01 transcation? what is its usage?>
Thanks

Hi Benny,
The Prod. sloc maintained in mtl master serves dual purpose, first when a production order is created for that material, it acts as the receiving location i.e. when you post a GR for the prodn order via MB31 the stock gets posted into this sloc. The other purpose is when this material is a component in a production order, then stock gets issued from this sloc.
This field can be maintained at material master level or at BOM level. The one maintained at BOM level has a higher precedence over the one in material master. If you might ask why 2 places to maintain the same data, there might be instances where the component is stored at different slocs depending on the BOM, then it makes sense to maintain at BOM level, but if the component is always maintained at a single sloc, then maintain in mtl master level.
Hope the above answers your query.
Regards,
Vivek

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