Some locations can be used to store different types of the same kind of material. For example, a vat may contain any kind of liquid, such as olive oil, ammonia, or acetic acid. However, at any one time, you only want one type of liquid in that location.

Define these locations as single-item locations by setting Single Item to Yes in Location Maintenance. When a location is designated as a single item location, it can only have an on-hand balance for a single lot of one item at a time.