CAPITAL Office Business Software

My understanding of Departments and Locations are:-

* Departments are a section of the business say a Retail Section and Workshop section.

* Location is a Stock area (Location). I assume this could be a “location” that is available to multiple departments.

If the above is correct?

Yes. A location is usually equivalent to a warehouse. Although there is nothing stopping you from dividing your warehouse into more than one location if there is are organisational reasons for doing so.