On your production order you have 2 locations: Production Location and 
Destination Location. (Yes... I know and agree that the names and terminology 
can be rather confusing...)

The Production Location will be the source location for the raw materials 
moves. The destination for those moves is set on the product object (Production 
Location on the product). 

The Destination Location means where will the generated products will "appear" 
(destination location for those moves). The source location of those moves, 
again, is the production location on the product form for that product.

So... If you have a location (Let's call it " raw stock") where you have your 
raw materials and an "stock" location for your final product you should put on 
your production order: 
Production Location: "raw stock"
Destination Location: "stock"

That way your raw materials will be moved from "raw stock" to "default 
production" thus lowering the inventroy on "raw stock". On the other side, your 
final products will come from "default production" and appear on "stock".

Regards,
Pedro




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