You do you know you can include both warehouses in the same report.  In the selection section for warehouse just put in the two warehouses separated by a comma.  For example 000,001 and the report will include both.  I would keep in two warehouses are you are doing.

Yes I am aware; however, this causes items to be duplicated on the reports and some other challenges of making the data nice and neat for the 3rd party auditors. Just looking to see how others do it as well.

Many years ago, as a consultant, I worked with a client that had a Master Developer design and implement a fully custom enhancement that supported "Wholes and Parts".  The client sold cases of floor tile and carpet, they tracked as Standard Unit of Measure by Square Foot, but needed to track how many whole cases they had and how many Partial Cases, as well as how many Whole Rolls of carpet and how many "remnants" or "parts" they had on hand.  They needed this when looking at inventory on hand, and when doing physical counts.  It was a very custom modification, maybe talk to your reseller or record or Sage Consultant.  I will say, it was a very expensive enhancement for that client.  

Gotcha, I have reached out to my reseller just waiting to hear back. Thanks for the info!

Lot valuation might work, but then you have a problem in how to "make" partials from full sheets.  BM production does not allow you to create an item from itself (without an enhancement from DSD).

Thank you, we will look into this!

Create a second part number is another way.  The full piece item would be 123456, the partial piece number would be 123456C (C=Cut).  If you pull the full piece, it would be 123456.  Any leftover would be put back into inventory as 123456C.  Depending on how precise you want the process, you could make the "C" item a lot # valuation which would allow tracking of the cut pieces (print a bar code label with lot number to place on cut part).  A different type of complexity but IMHO working with two part numbers in ONE warehouse is a lot easier than working with one part number in TWO warehouses.  I used this process 25 years ago with MAS90 3.5 and it worked well at the time.

I would recommend lot # tracking for the cut pieces if knowing individual pieces is important.  An example of this is I need 5,000 feet of uncut cable.  I have uncut cable in 10,000 foot spools.  I also have 9,000 of cable under the cut part number.  Should I use the cut number to fulfill the order?  If lot # is not in play with the cut number, you don't have an easy way to ascertain the optimal decision (full or cut).  This actually happened to me.  I ordered 5,000 feet of uncut fiber optic cable and received two partial spools.  NOT happy!