diff --git a/backend/patches/addUOMs.ts b/backend/patches/addUOMs.ts
index d53329e7..b8b5c652 100644
--- a/backend/patches/addUOMs.ts
+++ b/backend/patches/addUOMs.ts
@@ -1,8 +1,34 @@
 import { ModelNameEnum } from '../../models/types';
-import { defaultUOMs } from '../../utils/defaults';
 import { DatabaseManager } from '../database/manager';
 import { getDefaultMetaFieldValueMap } from '../helpers';
 
+const defaultUOMs = [
+  {
+    name: `Unit`,
+    isWhole: true,
+  },
+  {
+    name: `Kg`,
+    isWhole: false,
+  },
+  {
+    name: `Gram`,
+    isWhole: false,
+  },
+  {
+    name: `Meter`,
+    isWhole: false,
+  },
+  {
+    name: `Hour`,
+    isWhole: false,
+  },
+  {
+    name: `Day`,
+    isWhole: false,
+  },
+];
+
 async function execute(dm: DatabaseManager) {
   for (const uom of defaultUOMs) {
     const defaults = getDefaultMetaFieldValueMap();
diff --git a/models/inventory/InventorySettings.ts b/models/inventory/InventorySettings.ts
index 1bcd6c0a..eee67389 100644
--- a/models/inventory/InventorySettings.ts
+++ b/models/inventory/InventorySettings.ts
@@ -4,6 +4,7 @@ import { AccountTypeEnum } from 'models/baseModels/Account/types';
 import { ValuationMethod } from './types';
 
 export class InventorySettings extends Doc {
+  defaultLocation?: string;
   stockInHand?: string;
   valuationMethod?: ValuationMethod;
   stockReceivedButNotBilled?: string;
diff --git a/models/inventory/StockMovementItem.ts b/models/inventory/StockMovementItem.ts
index 9a70b38c..665852a1 100644
--- a/models/inventory/StockMovementItem.ts
+++ b/models/inventory/StockMovementItem.ts
@@ -3,11 +3,10 @@ import {
   FiltersMap,
   FormulaMap,
   ReadOnlyMap,
-  RequiredMap
+  RequiredMap,
 } from 'fyo/model/types';
 import { ModelNameEnum } from 'models/types';
 import { Money } from 'pesa';
-import { locationFilter } from './helpers';
 import { StockMovement } from './StockMovement';
 import { MovementType } from './types';
 
@@ -21,10 +20,20 @@ export class StockMovementItem extends Doc {
   amount?: Money;
   parentdoc?: StockMovement;
 
+  get isIssue() {
+    return this.parentdoc?.movementType === MovementType.MaterialIssue;
+  }
+
+  get isReceipt() {
+    return this.parentdoc?.movementType === MovementType.MaterialReceipt;
+  }
+
+  get isTransfer() {
+    return this.parentdoc?.movementType === MovementType.MaterialTransfer;
+  }
+
   static filters: FiltersMap = {
     item: () => ({ trackItem: true }),
-    toLocation: locationFilter,
-    fromLocation: locationFilter,
   };
 
   formulas: FormulaMap = {
@@ -43,40 +52,50 @@ export class StockMovementItem extends Doc {
       dependsOn: ['item', 'rate', 'quantity'],
     },
     fromLocation: {
-      formula: () => {
-        if (this.parentdoc?.movementType === MovementType.MaterialReceipt) {
+      formula: (fn) => {
+        if (this.isReceipt || this.isTransfer) {
           return null;
         }
+
+        const defaultLocation = this.fyo.singles.InventorySettings
+          ?.defaultLocation as string | undefined;
+        if (defaultLocation && !this.location && this.isIssue) {
+          return defaultLocation;
+        }
+
+        return this.toLocation;
       },
+      dependsOn: ['movementType'],
     },
     toLocation: {
-      formula: () => {
-        if (this.parentdoc?.movementType === MovementType.MaterialIssue) {
+      formula: (fn) => {
+        if (this.isIssue || this.isTransfer) {
           return null;
         }
+
+        const defaultLocation = this.fyo.singles.InventorySettings
+          ?.defaultLocation as string | undefined;
+        if (defaultLocation && !this.location && this.isReceipt) {
+          return defaultLocation;
+        }
+
+        return this.toLocation;
       },
+      dependsOn: ['movementType'],
     },
   };
 
   required: RequiredMap = {
-    fromLocation: () =>
-      this.parentdoc?.movementType === 'MaterialIssue' ||
-      this.parentdoc?.movementType === 'MaterialTransfer',
-    toLocation: () =>
-      this.parentdoc?.movementType === 'MaterialReceipt' ||
-      this.parentdoc?.movementType === 'MaterialTransfer',
+    fromLocation: () => this.isIssue || this.isTransfer,
+    toLocation: () => this.isReceipt || this.isTransfer,
   };
 
   readOnly: ReadOnlyMap = {
-    fromLocation: () =>
-      this.parentdoc?.movementType === MovementType.MaterialReceipt,
-    toLocation: () =>
-      this.parentdoc?.movementType === MovementType.MaterialIssue,
+    fromLocation: () => this.isReceipt,
+    toLocation: () => this.isIssue,
   };
 
   static createFilters: FiltersMap = {
     item: () => ({ trackItem: true, itemType: 'Product' }),
-    fromLocation: (doc: Doc) => ({ item: (doc.item ?? '') as string }),
-    toLocation: (doc: Doc) => ({ item: (doc.item ?? '') as string }),
   };
 }
diff --git a/models/inventory/StockTransferItem.ts b/models/inventory/StockTransferItem.ts
index e09f6bb6..9b12d208 100644
--- a/models/inventory/StockTransferItem.ts
+++ b/models/inventory/StockTransferItem.ts
@@ -2,7 +2,6 @@ import { Doc } from 'fyo/model/doc';
 import { FiltersMap, FormulaMap } from 'fyo/model/types';
 import { ModelNameEnum } from 'models/types';
 import { Money } from 'pesa';
-import { locationFilter } from './helpers';
 
 export class StockTransferItem extends Doc {
   item?: string;
@@ -94,6 +93,20 @@ export class StockTransferItem extends Doc {
       },
       dependsOn: ['item'],
     },
+    location: {
+      formula: () => {
+        if (this.location) {
+          return;
+        }
+
+        const defaultLocation = this.fyo.singles.InventorySettings
+          ?.defaultLocation as string | undefined;
+
+        if (defaultLocation && !this.location) {
+          return defaultLocation;
+        }
+      },
+    },
   };
 
   static filters: FiltersMap = {
@@ -105,6 +118,5 @@ export class StockTransferItem extends Doc {
 
       return { for: ['not in', [itemNotFor]], trackItem: true };
     },
-    location: locationFilter,
   };
 }
diff --git a/models/inventory/helpers.ts b/models/inventory/helpers.ts
index 24de3e98..8b137891 100644
--- a/models/inventory/helpers.ts
+++ b/models/inventory/helpers.ts
@@ -1,12 +1 @@
-import { Doc } from "fyo/model/doc";
-import { FilterFunction } from "fyo/model/types";
-import { QueryFilter } from "utils/db/types";
 
-export const locationFilter: FilterFunction = (doc: Doc) => {
-  const item = doc.item;
-  if (!doc.item) {
-    return { item: null };
-  }
-
-  return { item: ['in', [null, item]] } as QueryFilter;
-};
diff --git a/schemas/app/inventory/InventorySettings.json b/schemas/app/inventory/InventorySettings.json
index 3230a77e..0075ee47 100644
--- a/schemas/app/inventory/InventorySettings.json
+++ b/schemas/app/inventory/InventorySettings.json
@@ -21,6 +21,13 @@
       "default": "FIFO",
       "required": true
     },
+    {
+      "fieldname": "defaultLocation",
+      "label": "Default Location",
+      "fieldtype": "Link",
+      "target": "Location",
+      "create": true
+    },
     {
       "fieldname": "stockInHand",
       "label": "Stock In Hand Acc.",
diff --git a/schemas/app/inventory/Location.json b/schemas/app/inventory/Location.json
index e25047be..6926aaee 100644
--- a/schemas/app/inventory/Location.json
+++ b/schemas/app/inventory/Location.json
@@ -12,11 +12,13 @@
       "required": true
     },
     {
-      "fieldname": "item",
-      "label": "Item",
+      "fieldname": "address",
+      "label": "Address",
       "fieldtype": "Link",
-      "target": "Item"
+      "target": "Address",
+      "placeholder": "Click to create",
+      "inline": true
     }
   ],
-  "quickEditFields": ["item"]
+  "quickEditFields": ["item", "address"]
 }
diff --git a/src/setup/setupInstance.ts b/src/setup/setupInstance.ts
index c626aed5..6937267a 100644
--- a/src/setup/setupInstance.ts
+++ b/src/setup/setupInstance.ts
@@ -7,7 +7,6 @@ import {
   DEFAULT_LOCALE,
   DEFAULT_SERIES_START,
 } from 'fyo/utils/consts';
-import { ValueError } from 'fyo/utils/errors';
 import {
   AccountRootTypeEnum,
   AccountTypeEnum,
@@ -23,7 +22,7 @@ import {
   setCurrencySymbols,
 } from 'src/utils/initialization';
 import { getRandomString } from 'utils';
-import { defaultUOMs } from 'utils/defaults';
+import { getDefaultLocations, getDefaultUOMs } from 'utils/defaults';
 import { getCountryCodeFromCountry, getCountryInfo } from 'utils/misc';
 import { CountryInfo } from 'utils/types';
 import { CreateCOA } from './createCOA';
@@ -62,9 +61,13 @@ async function createDefaultEntries(fyo: Fyo) {
   /**
    * Create default UOM entries
    */
-  for (const uom of defaultUOMs) {
+  for (const uom of getDefaultUOMs(fyo)) {
     await checkAndCreateDoc(ModelNameEnum.UOM, uom, fyo);
   }
+
+  for (const loc of getDefaultLocations(fyo)) {
+    await checkAndCreateDoc(ModelNameEnum.Location, loc, fyo);
+  }
 }
 
 async function initializeDatabase(dbPath: string, country: string, fyo: Fyo) {
@@ -368,5 +371,10 @@ async function updateInventorySettings(fyo: Fyo) {
     inventorySettings.set(settingName, accounts[0].name);
   }
 
+  const location = fyo.t`Stores`;
+  if (await fyo.db.exists(ModelNameEnum.Location, location)) {
+    inventorySettings.set('defaultLocation', location);
+  }
+
   await inventorySettings.sync();
 }
diff --git a/utils/defaults.ts b/utils/defaults.ts
index 6bead525..be7cb8ec 100644
--- a/utils/defaults.ts
+++ b/utils/defaults.ts
@@ -1,26 +1,34 @@
-export const defaultUOMs = [
-  {
-    name: 'Unit',
-    isWhole: true,
-  },
-  {
-    name: 'Kg',
-    isWhole: false,
-  },
-  {
-    name: 'Gram',
-    isWhole: false,
-  },
-  {
-    name: 'Meter',
-    isWhole: false,
-  },
-  {
-    name: 'Hour',
-    isWhole: false,
-  },
-  {
-    name: 'Day',
-    isWhole: false,
-  },
-];
+import { Fyo } from 'fyo';
+
+export function getDefaultUOMs(fyo: Fyo) {
+  return [
+    {
+      name: fyo.t`Unit`,
+      isWhole: true,
+    },
+    {
+      name: fyo.t`Kg`,
+      isWhole: false,
+    },
+    {
+      name: fyo.t`Gram`,
+      isWhole: false,
+    },
+    {
+      name: fyo.t`Meter`,
+      isWhole: false,
+    },
+    {
+      name: fyo.t`Hour`,
+      isWhole: false,
+    },
+    {
+      name: fyo.t`Day`,
+      isWhole: false,
+    },
+  ];
+}
+
+export function getDefaultLocations(fyo: Fyo) {
+  return [{ name: fyo.t`Stores` }];
+}