Inventory Places represents the top level of your inventory. Inventory Locations are assigned to an Inventory Place. Inventory Places are places like stores, warehouses, stockrooms, and distribution centers. Breaking up your inventory into multiple Inventory Places, even for a small store with a stockroom, can help streamline the Sales Order process.
Here's an example of how you might utilize Inventory Places for a single store that also has a stockroom in the back that stores extra stock not on the shelf. You'd create two Inventory Places, one is the for the Store, and one is for the Stockroom. When Sales Orders are created for the Store, when it matches the UPC barcodes and deducts from your inventory it will pull from the Store's Inventory Locations before it will pull stock from the Stockroom. This more accurately matches where the inventory was actually pulled from since customers aren't in your stockroom pulling out merchandise.