When an item is setup using a Storage dimension that is Advanced Warehouse enabled (using Location dimension) and the Store or Shipping Warehouse has "Use warehouse management process" set to "Yes", two different scenarios can happen:
1. The Sales order will be created in Dynamics 365 Headquarters and the line item will not be assigned a Location
2. You will receive the error:
"Posting Posting Sales order: xxxx Item: yyyy Inventory dimension Location must be specified. ... Update has been canceled."
When setting the Warehouse with "Use warehouse management process" set to "Yes", the Default Issue Location will become unavailable in the Inventory and Warehouse management fast tab and MPOS does not know where to get the Location (which is required for the item).