Warehouse Management can be useful when a company is divided into several separate units. A company can be divided into different distributed warehouses, or complete operational units with their own manufacturing and a complete order flow. Below the definition of a warehouse in MONITOR is described. See more about the use of the Warehouse Management in MONITOR in the Using MONITOR Procedures guide.
We use the word Warehouse when we mean a distributed storage place containing a stock of finished goods (when the warehouse is only used to "store goods"). If other operations take place at the warehouse (for example manufacturing) then we call it an Operational unit. The normal case is that a warehouse can be called an Operational unit.
The basic definition, that determines whether to use two companies or two operational units (warehouses), depends on if the units form the same legal entity or not. If they are both parts of a single legal entity, the accounts payables and receivables and accounting shall be common for the company, and then it might be useful to configure two operational units/warehouses.
Please remember that it can sometimes be convenient to configure two companies even though they belong to the same legal entity. For example, there may be different company cultures in two companies that are merged and in that case it would not make sense to share the part register, customer register, and other records.
Please also see the additional supplement .
Definition