Bin Locations 
A bin location is the smallest addressable unit of space in a warehouse where your goods are stored.
The following diagram shows you an example of a warehouse and its bin locations:
To help you work with bin locations in a more efficient manner, SAP Business One provides you with the following four kinds of bin locations. Properly used, they can speed up the process of receipts and issues of inventory in your bin locations.
Note
In SAP Business One, you can set a bin location as a receiving bin location and default bin location at the same time.
Receiving Bin Location – A special section in a warehouse which typically represents a receiving inspection area for temporary storage of incoming goods. After the inspection is completed, the goods are then placed in the storage bin locations.
To designate a bin location as a receiving bin location, select the Receiving Bin Location checkbox in the Bin Location Master Data window.
SAP Business One can automatically place the incoming goods in the receiving bin locations of your warehouse if the following conditions are met:
You have enabled receiving bin locations for your warehouse.
To do this, select the Enable Receiving Bin Locations checkbox on the General tab of the Warehouses – Setup window.
There are active receiving bin locations in your warehouse.
For more information, see Automatic Bin Location Allocation in Receipts.
Storage Bin Location – A bin location in a warehouse where the goods are stored.
To indicate a bin location is a storage bin location, leave the Receiving Bin Location checkbox in the Bin Location Master Data window unselected.
Default Bin Location – A bin location which is used to store incoming goods by default. SAP Business One lets you specify the default bin locations on the following three levels:
Warehouse
To specify the default bin location for all items in a warehouse, go to Warehouses - Setup: Bin Locations Tab.
Item Group
To specify the default bin location for all items in an item group, go to Item Groups - Setup.
Item
To specify the default bin location for an item, go to Item Master Data: Inventory Data Tab.
NoteFor an item, if you have specified the default bin locations on all three levels, the priority of the bin locations are as follows:
Default Bin Location of Item > Default Bin Location of Item Group > Default Bin Location of Warehouse
During receipt of the item, the default bin location you've specified on the item level is considered the first choice among the three default bin locations in terms of the storage location.
End of the note.Typically, you can set a storage bin location as the default bin location for storing a particular item, or items from a particular item group or warehouse. SAP Business One automatically allocates the incoming items to the default bin location unless your warehouse has receiving bin locations.
For more information, see Automatic Bin Location Allocation in Receipts.
System Bin Location – A bin location predefined by SAP Business One for each warehouse which has enabled bin locations. The bin location code is <Warehouse Code><Bin Location Code Separator>SYSTEM-BIN-LOCATION.
By default, the system bin location of a warehouse is set as the warehouse's default bin location. It's used for receiving and issuing items automatically if it is the only bin location in the warehouse.
With the predefined system bin locations, you can carry out your regular transactions without having to create bin location-related data immediately after enabling the function.
NoteYou cannot change, deactivate, or delete any system bin location.
End of the note.