You can add location and use them in Location System Field. Location is where the asset is physically located.

Adding Locations

  1. Go to Assets > Settings > Locations
  2. Click Create Location
  3. Fill the fields 
  4. Click Save

You can delete a location if it is not used. Un-check "Is active" when a location is no longer available. 

"Is external" is a location where it is not managed by your company.